PPP Study On The Project Renegotiation Mechanism And Avoidance Mechanism Of Project Renegotiation

Because there are some information asymmetry between the two sides of PPP project transaction,and a high degree of uncertainty exists in the occurrence of future transactions,so it is too expensive to exhaust all possible events and the rights and obligations of both parties to the transaction after the occurrence is too high,which inevitably leads to the incompleteness of the project contract.The incompletness will lead to a certain renegotiation risk in the latter stage of the PPP projects,which will bring additional transaction costs to the projects.Therefore,based on the renegotiation mechanism of PPP project,this paper takes PPP project as the research object and uses system dynamics setting a model to analyzes how to set up renegotiation avoidance mechanism,which can avoid the frequency of inefficient and high-frequency renegotiation in the operation of PPP projects.First of all,by studying the research results and related theories of domestic and foreign scholars on PPP project renegotiation,this paper points out that there are many factors influencing PPP renegotiation in PPP projects.However,in order to avoid renegotiation effectively,it is necessary to figure out the effect of each factor influencing on PPP project renegotiation and the relationship between the factors.Secondly,this paper combies the triggering events of 84 PPP projects which are related to the renegotiation at home and abroad.Based on the grounded theory,the paper conductes open code and spindle code to the original data.Then,the paper summarizes 4 main categories and the 14 key factors that cause the PPP project to initiate renegotiation,and corresponding countermeasures are proposed in advance.Thirdly,according to the relevant principles of game theory,this paper analyzes the settlement interval between government and social capital in the process of complete information dynamic game by constructing the sub-game refining Nash equilibrium model,so as to extract the 11 key factors,including the government research,influencing the process of PPP project renegotiation and some avoiding measures in the course of the negotiation are put forward.The results show that the settlement interval is decided by "the amount of compensation submitted to the government after the social capital initiating the renegotiation P","the winning probability of social capital does not accepting the government compensation and initiating the lawsuit Q","the renegotiation cost of social capital C1"," the litigation cost of social capital C2","the renegotiation cost of government D1" and " the government's lawsuit cost D2".The final settlement range is g ? {x:pq+c1-c2?xp?pq+d2-d1}.Based on the analysis of case,this paper comes to the following conclusions: the renegotiation management of the case is relatively consummate,and all five subsystems have influence on the renegotiation management.So,in order to avoid renegotiation,all five subsystems need to be controlled.In terms of the effect of avoidance measures,the restraining effect in the project identification stage is better than that in other stages.The most effective way in the identification stage is to improve the credibility of the preliminary investigation.At the same time,it is needed to be paid attention to the establishment of mutual trust and the establishment of after-the-fact feedback mechanism because the two avoidance measures can run through the whole life cycle of PPP projects.