Research On Ppp Model Of Urban Public Utilities In China

Urban public utilities are the general terminology of industrial clusters that provide universal necessities and services to individuals or organizations through infrastructure.They play an important role in ensuring material production,maintaining public order,and meeting basic needs of life.At the same time,they are also a strong guarantee for the new urbanization strategy.After economic reform and opening up,guided by marketization,urban public utilities in my country have roughly gone through three stages: investment promotion-private expansion-public-private partnership(PPP).In general,it can be summarized as a gradual transition from the monopoly of state-owned enterprises to the development of private enterprise franchising.It is in this process that the PPP as the traditional supply mode of an alternative institutional arrangements,improving governance system,improve the public service supply,expand the space of the positive role of enterprise development,thus in the field of urban public utilities and infrastructure construction in China gradually popular,all parts introduced a large number of PPP demonstration projects in recent years.At the same time,problems such as dissimilation of construction use,difficulty in participation of social capital,insufficient government supervision efficiency,lack of project contract governance and risk management are gradually exposed,which deserve the attention of all sectors of society and need to be solved urgently.Taking the contract arrangement as a clue,the problems existing in the PPP model of urban public utilities in China can be understood as the governance problems of THE PPP contract,so as to find an optimal path for the development of the PPP model in China's urban public utilities by perfecting its contract terms and optimizing its contract design.In view of this,the author studied the PPP model of Urban public utilities in China from the following five aspects by studying relevant books and materials,drawing on the theoretical achievements of predecessors and combining with the reality of China.First,PPP model has become an important institutional arrangement to promote the modernization of China's governance system and governance capacity by virtue of its ability to effectively solve the local financial pressure and give full play to the endowment advantages of public and private parties.This part is reflected in four aspects: First,the existing studies research and methods of urban public utilities and PPP models in demostic and abroad are compared.The second is the discrimination of the relevant characteristics of urban public utilities and the classification of industry.Third,through the discussion of the concept and connotation of PPP,the essence of the contract is clarified,and the theory of property rights is used to classify the existing PPP models into three categories: limited property rights,mixed property rights and complete property rights.Fourth,the new classical to new institutional economics on the PPP model of urban public utilities related to the theory.Second,the adaptability and existing problems of PPP mode contract of urban public utilities in China.The argument related to this can be divided into three parts.First,the problems existing in the PPP model of urban public utilities in China are summarized into four aspects: dissimilation of production and construction use,difficulty in participation of social capital,insufficient risk management ability,and the need to improve the efficiency of government supervision.Second,from the perspective of contract arrangement,the process of cooperation between urban public utility government and social capital after the reform and opening up is reinterpreted into three stages,namely,fixed contract stage,contract stage and PPP contract stage.Three is the comparison of the reference to the Public Sector value method(Public Sector Comparator),is characterized by vertical integration of PPP contracts with traditional model of administrative contract in terms of the efficiency of Public goods supply,thus it is concluded that the PPP model in the field of Public utilities in our country application condition and scope,and is verified by the actual case of Hefei Wangxiaoying Wastewater Treatment Project.Third,the full cycle risk management of PPP project contract of urban public utilities.Due to the incompleteness of PPP contracts,various risk factors should be considered in the design of PPP contracts.On the basis of grasping the risk characteristics of PPP contracts,dynamic whole-cycle risk management of PPP projects should be realized,so as to ensure the optimal creation and distribution of project rent value.In addition,as the following four aspects: one is to establish a full and accurate list of risk identification,namely through 40 PPP problem case studies to our country,urban public utilities to the PPP project risk is divided into five categories,including the government lead to risk,legal risk,financial risk,operational risk and market risk,project construction total 20 kinds,and to establish the risk list.The second is the risk early warning mechanism of scientific system.In other words,a set of scientific and systematic risk index system are established by using the method of fuzzy comprehensive evaluation and expert scoring,which demonstrates how to reasonably evaluate the risk of PPP project of urban public utilities in practice.Third,the risk sharing framework with clear rights and responsibilities,namely,the PPP risk factors are classified from the macro,medium and micro levels,and then the risk sharing framework of the PPP project of urban public utilities is established by combining the hierarchical association with the responsibility arbitration mechanism.The fourth is the social co-governance environment with collective efforts.Starting from the transaction cost theory and combining the effectiveness of traditional etiquette and public order and good customs,it provides a more comprehensive perspective to deal with the risks of PPP projects in urban public utilities.Fourth,the optimal design of PPP contracts for urban public utilities in China.Under the framework of full cycle risk management of PPP contract,the mathematical model is used as an analysis tool to optimize the design of PPP contract by discussing the creation and distribution of project rent value,so as to realize the optimal allocation of PPP project resources.It is discussed in the following four aspects: First,the outline of the basic framework of PPP contract for urban public utilities,including project type and charging mechanism,main contract terms and contract design criteria.Second,through the construction of mathematical model,it explains the proportion of each factor of production in the contract and its variation under the limited condition of control,and analyzes the factors affecting the creation and distribution of project rent value.Thirdly,based on the incompleteness of PPP contracts,a mathematical model of dynamic game is constructed,and the factors affecting the creation and distribution of project rent value are analyzed.The fourth part is a comprehensive study and analysis to optimize the design of the PPP contract for urban public utilities from five aspects of improving the PPP contract,including the benefit clause,risk clause,subject clause,supervision clause and supplementary clause.Fifth,the development of China's urban public utilities PPP mode of the relevant policy recommendations.To sum up there are four policy recommendations as follows.First,to realize the benign development of the PPP model of urban public utilities in China,it is necessary to optimize the design of project contracts,which mainly includes perfecting the pattern matching mechanism,rationally allocating the project rent value,and realizing the dynamic risk management.Second,the PPP project contract is based on the legal framework.It highlights the legal compliance review of the contract,clarifies the legal relationship of the PPP contract,and establishes and improves relevant laws and regulations,which can provide a strong legal guarantee for the further development of the PPP model.Third,the development of PPP mode of urban public utilities needs the escort of government supervision.Establishing a new supervision concept,perfecting the government supervision system and perfecting the supervision mechanism are three important means to strengthen the government supervision.Fourthly,to develop the PPP model of urban public utilities in China requires social co-governance,which can be achieved by highlighting social norms,establishing public accountability mechanism and shaping the environment of social co-governance.In conclusion,the PPP model is based on the nature of the public sector(government)and the private sector(social capital),the contractual arrangements between the realization of China's urban public utilities PPP mode benign operation and coordinated development,should focus on the PPP contract management,according to the specific of the PPP project facing the limited conditions,before the project contracting,project during the trial operation,project interim evaluation phase timely improve the terms of the contract,so as to continuously optimize the PPP contract design,for the development of urban public utilities in China PPP model offering an effective path.