Research On PPP Long-Term Contract Based On Renegotiation

The imperfection of contract and the secular of PPP project bring about PPP renegotiation inevitable.In the research of PPP project management,how to improve the efficiency of contract renegotiation,reduce transaction costs and ensure the enthusiasm of social capital work,in order to achieve the continuous improvement of PPP project,has always been the core concern of practitioners and theorists.The essence of social capital incentive is the incentive to the agent in the principal-agent relationship.Contract renegotiation,as the core element to ensure the sustained and effective implementation of the project,is regarded as the focus of the government's incentive to social capital.It is generally recognized that contract renegotiation contributes to government and enterprise to realize their common interests,and it can provide a reasonable income guarantee for the cost of social capital investment projects.Social capital should more actively fulfill its contractual obligations and promote the success of the contract.However,in the practice of PPP projects,some project governments allow renegotiation,which not only fails to win social capital,but also leads to "betrayal",which makes the renegotiation of PPP contracts in a dilemma.The reasons are the imperfection of the system of re-negotiation at the national level,the incomplete current PPP contract guidelines,the insufficient experience of local government management and the fact that PPP projects' control is mostly controlled by social capital,which make the research of renegotiation extremely important.In view of this,this paper argues that it is necessary to identify the trigger events of renegotiation in the whole life cycle of PPP projects,divide the control of renegotiation into two aspects: pre-negotiation and post-negotiation,and give the control measures pertinently: embedding the renegotiation in the contract beforehand,supervising the way of realizing the renegotiation afterwards,and jointly guarantee the orderly implementation of the renegotiation.Based on the above research outline,the research is as follows:First,PPP project whole life cycle renegotiation trigger event identification.Points from the working process of the PPP projects' whole life cycle,past obstacles to contract performance and the related contract in the contract guide to recognize the uncertainty events of whole life cycle,and then summarize out the PPP project renegotiation triggering event,include prior inability or rent-seeking renegotiation events and afterwards opportunism or the pareto optimality renegotiation events.Detailed analysis of its causes and effects,can be divided into level and project level renegotiation events finally.Second,verification and control of renegotiation trigger events in PPP project.The AHPDEMATEL method was introduced to calculate the interactive influence of the renegotiation trigger event.The AHP method was used to calculate the vertical influence degree,and the DEMATEL method was used to calculate the horizontal influence degree.Finally,the comprehensive influence degree was obtained.According to the identified mechanism of the pre-event and post-event of the renegotiation trigger and the results of the interactive research,the control mode of the renegotiation is set as two aspects: the design of the pre-event mechanism(renegotiation embedded contract)and the supervision of the post-event problem(renegotiation implementation mode).Third,research on contract design of PPP project based on renegotiation.Are given the two measures of pre-event and post-event,and advice to control the renegotiation of the project,advance the mechanism is the PPP contracts' design,with "planning the guide,to negotiate control as the main line,project success as the goal" as the dominant idea,to comprehensively consider the importance of renegotiation events and hierarchy,presents the principles and the terms of the contract the terms of the contract setting advice and examples.Post-supervision is mainly to set up the implementation mode of renegotiation,and guarantee renegotiation by clarifying the basic principles of renegotiation,starting conditions,evidence/basis,renegotiation path,supervision method,etc.,and feedback the design of the contract through field experiments to observe the performance effect.In summary,the study is based on the theory of renegotiation,Using literature research,comparative analysis,case analysis,text analysis and other methods,through the suggestions on setting up contract terms and the implementation on setting up renegotiation terms,to establish a control mode adapted to the current PPP project renegotiation,to provide theoretical and practical guidance for improving the efficiency of renegotiation.