Legal Research On Supervision Mechanism Of Public-private Partnership

The PPP project supervision has its own particularities, different from other economic activities supervised by the government, in PPP projects, government is the decision-maker, participant and supervisor, this must cause a series of problems, for example, the unclear distribution of functions between various government departments, or multiple supervision. This paper analyzes the functions of the supervisor and the process which supervisor should follow through comparison the supervision mechanism of PPP in other countries and regions, proposes the supervision mechanism of PPP.This paper is divided into five chapters, the first part introduces the research background, mainly about the development and some problems of PPP. From 1940 s, the Western countries started to encourage the private sector to enter the field of providing public service, introduce market competition. After 1980 s, most countries in the world used PPP to provide public service. Through the analysis of the research by the domestic and abroad scholars, the paper put forward the problem that need to be study, legal research on supervision mechanism of public-private partnership.Second part mainly analyzes the particularity of PPP supervision, the primary cause of PPP supervision is market failure, PPP’s target is to provides public service and public service has natural monopoly, while private sector is economic people, economic people’s instinct is making interests maximize, so economic people may use the rights from PPP to do some monopoly industries, deviates from PPP’s original intention, makes resources waste and resources configuration appear problem. Market failure occurs, thus the whole process of PPP need supervision. On the other hand the government as the supervisor has the problem named government failure, many people think the government represents the public interests, but in fact, government can also be seen as an economic people, officials has own purpose, wealth, prestige, power and so on. Notable achievements are effective way to achieving these aims, so officials will supply an excess infrastructure, resulting in a waste of resources and low efficiency. Therefore PPP cannot be supervised in accordance with previous supervision mechanism.The third part mainly introduces the design of supervision mechanism of PPP abroad, distinguish the two modes with whether there is. United Kingdom, United States and the Singapore have set up an independent supervisor. France, German and Japan don’t have an independent supervisor. Through the analysis of the PPP supervision mode in other country, the current understanding of the world on the PPP project supervision, we can learn from their experiences.The fourth part is the analysis of our supervision about PPP, there are some problems in our supervision mechanism. Our current PPP supervisor is the departments of the government, different PPP has different supervisor. At present, in our supervision mechanism of PPP, there are still lots of government departments at all levels. The resource allocation of public service is decided by the government, the government is different from the private sector, information spread slow. These departments lack coordination and communication, so it is hard to unity the policy. In the PPP project, the government plays multiple roles, as a decision-maker, deciding to choose particular private sector, as a participant, signing a contract with the private sector, as a supervisor, responsible for overseeing the operation of PPP. All these problems lead the supervision off target.The last part is to put forward some suggestions about the design of the supervision mechanism of PPP in China. First of all we should have legislate a national level PPP laws, it is the fundamental guarantee for the supervision. Secondly, establish a special agency to coordinate current supervision mechanism. Again, in the operation of supervision mechanism, supervision agency should have legislative power, judicial power and administrative power. Attention should also be paid to the transformation of government functions in the process of designing the supervision mechanism, change the government from unlimited to limited.