The Basic Structure Of The Lender’s Step-in Rights In PPP Projects

The lender’s step-in rights in PPP projects refers to the right refers to the right to allow the PPP lender to intervene in the operation of the PPP project by performing monetary debts on behalf of the PPP project company or temporarily taking over the contractual relationship in the event of the defaults by the PPP project company.The purpose of its establishment is to guarantee the repayment of loans and protect the security of funds.It is the self-relief of the PPP lender as a stakeholder and a beneficial extension of the lenders’ s involvement in the corporate governance theory in the common commercial field.It can be said that on the basis of the generation of rights,the PPP lender’s step-in rights have the necessity of practical application and the legitimacy of legal theory.However,rules and regulations have inconsistent provisions on the PPP lender’s step-in rights,and there is a lack of higher-level legal norms to coordinate the contradictions and conflicts of existing regulations.Then,how to improve the legal structure of the PPP lender’s step-in rights in theory to promote the implementation of the legislative has become a key issue in the development of the PPP system.This paper attempts to explore the subject of rights,examine the nature of rights,clarify the content of rights,and define the exercise of rights from the perspective of the construction of the lender’s step-in rights,so as to improve the rights and obligations system of the PPP lender’s step-in rights and return to the original intention of the PPP model.The first chapter starts from the operation of the PPP project,grasps the role of the PPP lender and the function of its step-in rights,and points out that the PPP lender based on the financing relationship is the main provider of PPP project funds and the supervisor of the entire project operation.And its step-in rights is a corresponding right of the government step-in rights,and it has the unique function of promoting continuous financing,realizing the lender’s supervisory power,and reasonably distributing benefits and risks.The second chapter takes the necessity and value of the PPP lender’s step-in rights as the object of discussion,and sorts out the practical basis of the PPP lender’s step-in rights in the legal generation.This part points out that the government’s step-in rights are limited by the inherent drawbacks of administrative power,and it is difficult to realize the function and original intention of the PPP model.Therefore it is necessary to allow the PPP lender to complete the rational positioning of the relationship between the government and the market and achieve the purpose of public-private cooperation.At the same time,PPP lenders and social capital parties form a community of interests based on the credit relationship.Under the premise that the social capital party lacks sufficient relief rights,the PPP lenders need to be autonomous in order to achieve the convergent interests of both parties.In terms of rights value,the PPP lender’s step-in rights have the special value of more efficient allocation of social resources and more active play of the initiative of financial institutions,compared with the security right and bankruptcy reorganization.The third chapter studies tthe rights attributes and rights content of the PPP lender’s step-in rights.In terms of the rights attributes,this paper discusses from two aspects of theory and application,examines the description of the economic essence of the step-in rights in regulatory economics,and sorts out the legal support and realization method of the PPP lender’s step-in rights in practical application,so as to draw the conclusion that the PPP lender’s step-in rights belongs to a purely private law right.In terms of rights content,from the perspective of the local adaptability of rights migration,discuss the specific content of our country’s PPP lender’s step-in rights.By examining the nature of rights and restrictions on exercise,it is pointed out that as the most basic and convenient form of step-in for PPP lenders,the right to remedy and the right to intervene in the strict sense have a good localization foundation,which should be the connotation of our country’s PPP lender’s step-in rights.However,the contract renewal right which abandons the original social capital party,on the one hand,shows that the degree of intervention is too deep,and it is time-consuming and inefficient,and it is often difficult to obtain the consent of the government.On the other hand,it is essentially the same as the replacement of social capital by the government’s step-in rights,and there are overlapping rights,so it should not be the connotation of our country’s PPP lender’s step-in rights.The fourth chapter studies the exercise of the PPP lender’s step-in rights.Firstly,starting from the preconditions for exercise,clarify the specific exercising conditions of the PPP lender’s step-in rights,and emphasize the important role of direct agreement on the legitimacy of the right.Secondly,starting from the boundary with the government’s step-in rights,point out the the order of exercise and the distinction between the two types of step-in rights.Finally,starting from the way of exercising the rights,sort out the exercise process of the PPP lender’s step-in rights from the beginning to the withdrawal,and clarify the intervention period.