Study On The Renegotiation Mechanism Of PPP Project Concession Agreement

PPP is the abbreviation of English Public-private Partnership,which can be translated into a partnership between government and social capital,which is the government’s long-term cooperation to enhance the supply capacity of public goods and services,improve supply efficiency,and provide long-term cooperation.The number of PPP projects,the long term of franchise,the complex structure of the contract,the great influence of the internal and external environment changes,and the many risk factors,it is difficult to avoid the recurrence of the negotiation in the operation of the PPP project.On the basis of the existing PPP renegotiation research,this paper expounds the concept of PPP model,the basic situation of PPP renegotiation,the contract theory and the bargaining theory of bargaining through literature research,and systematically summarizes the research status of the PPP renegotiation.Through literature review,we clearly distinguish the factors that influence the negotiation and propose a prediction mechanism for PPP renegotiation.Combined with bargaining game theory,we explore the process of renegotiation between public and private parties.This paper clearly distinguishes the factors affecting PPP renegotiation as "the factors that trigger PPP renegotiation" and "the factors that affect the PPP renegotiation process." The definition and classification are given,and the prejudging mechanism of the PPP renegotiation is put forward to avoid the renegotiation of opportunism and to improve the efficiency of the renegotiation.Based on the existing bargaining game model,a bargaining game model for PPP renegotiation was established.The renegotiation process between the public and private parties was analyzed.It was concluded that the government would always be transferred to the social capital side for additional risk share under the information disadvantage situation.The risk of being transferred is related to the loss factor of the government’s negotiation and the degree of trust in the social capital.Finally,a case analysis was made based on two examples,and asystematic flow chart of the PPP renegotiation mechanism was proposed to provide a reference for the study of PPP renegotiation.