Analysis Of Causes Of Early Termination Of PPP Project And Study Of Compensation Mechanism

At present,my country is vigorously promoting the government and social capital cooperation(PPP)model to realize the complementarity of the two sides.While fully improving the quality and efficiency of the supply of public goods,it also reduces the financial pressure on government investment.However,in the current hot situation,the PPP project is not a panacea for a try,and early termination events occur from time to time.How to deal with the early termination event and deal with the follow-up termination problem;how to avoid the occurrence of early termination are all very practical but lack of research.In order to learn the experience and lessons of the early termination of failed projects,this paper conducted an analysis of the reasons for the early termination of PPP projects.As a variety of factors comprehensively affect the healthy development of PPP projects,leading to the occurrence of early termination,using structural equations to explore the cause of the early termination of PPP projects and the interaction between various factors.Established a structural equation model in which the basic influencing factors directly affect the final performance factors and indirectly through the influencing stage performance factors,combined with qualitative and quantitative analysis,and concluded that the government default most affects the termination of the relationship,and force majeure affects the termination of the entity the most.During the construction period,the multiple entities are terminated,and during the operation period,the multiple entities are terminated.In order to speed up the process of early termination of the project,this article establishes a compensation mechanism for early termination of PPP projects.First of all,the government’s responsibility for compensation to the social capital party under different circumstances is clarified,the highest(low)government revenue guarantee is introduced,and a compensation model based on the value of real options is established for three different default situations.Combined with the three types of constraints based on the compensation model based on the real option value compensation model,the social capital party’s project decision constraints,and the government’s project feasibility constraints,the early termination compensation mechanism for different default situations is determined.Combined with the characteristics of the compensation mechanism and the early termination event of the PPP project,the operation scheme of the compensation mechanism is determined.Finally,combined with the example of the H Bridge project terminated early due to government responsibility,the compensation mechanism in this paper is applied to verify the applicability of the corresponding compensation mechanism,which provides a reasonable reference for the calculation of the amount of compensation that needs to be paid when the PPP project is terminated early.