Influencing Factors And Triggering Mechanism Of PPP Project Renegotiation

In the field of infrastructure development,using Public-Private Partnership(PPP)model can effectively take advantage of government and social capital,improving the supply efficiency of projects.However,the incompleteness of the contract and the changing internal and external conditions of the project have led to the frequent and inefficient renegotiation of PPP projects in practice.Proper understanding and application of renegotiation can improve the adaptability to risks and maintain the long-term stability of the project.Therefore,it is necessary to study the influencing factors and triggering mechanisms of renegotiation to improve the governance efficiency.Firstly,on the premise of summarizing the theoretical basis and clarifying the principles,processes and results of renegotiation,this thesis identifies and selects the influencing factors of renegotiation through literature research and case summary and distinguishes and further improves 24 influencing factors covering the whole life cycle of PPP projects combined with expert interviews.Then this thesis uses the data of questionnaire survey to analyze the weight of each influencing factor.Variance analysis shows that the importance of factors from different participants’ perspectives is different.For example,the importance scores of social capital and third-party institutions for market risk are significantly higher than those of government.Next,the influencing factors are refined into six indexes by factor analysis,which are preliminary work,process management,contract design,government behavior,private behavior and environmental factor,and the importance of each index is analyzed.Secondly,this thesis selects and summarizes 28 typical cases of PPP renegotiation,and uses the method of clear set qualitative comparative analysis to find out five typical triggering configurations of renegotiation,including improper government behavior,termination of cooperation due to environmental variation and improper private behavior,lack of preliminary work and improper private behavior,etc.Among them,44% of the cases can be explained by the configuration of the core condition of improper government behavior and the auxiliary condition of environmental variation.Combined with specific cases information and theories,the internal interaction mechanism of each configuration and the triggering mechanism of renegotiation are elaborated,revealing the characteristic of PPP renegotiation is multiple concurrent causality.Finally,aiming at those key points in the practice of renegotiation,this thesis constructs a validated management process framework including the recognition,implementation and support mechanism of renegotiation,and puts forward renegotiation management suggestions from perspectives of government,social capital and governance mechanism,such as government should pay more attention to the preliminary work,improve legal system of renegotiation,social capital should correctly recognize and deal with project risks and actively establish a sound cooperation relationship,and for project management should emphasis on the combination of contract governance and relationship governance.These conclusions can provide reference for improving the governance efficiency of PPP renegotiation and even the whole project management.