The Perfection Of The Conditions For The Execution Of Government Step-in Rights In PPP Project

The rights of government step-in are essential clauses in a PPP contract.In certain circumstances,the government may exercise step-in rights in the project to ensure the safety or normal operation of the project.However,the exercise of government step-in rights will have a greater impact on the interests of the private party,so it is necessary to set strict conditions for exercise to regulate.In order to regulate the government step-in rights,we must first clarify the legal nature of government step-in rights.At present,China does not currently have clear provisions on the legal nature of government step-in rights,and there is controversy over the definition of the legal nature of government step-in rights.Although the government step-in rights are established through the signing of a PPP contract between the government and the private party,the government actually exercises the step-in rights to fulfill the state guarantee liability.The unilateral,compulsory,temporary nature of the government step-in rights also indicate that the act should be a government administrative act.As a state public power,the exercise of government step-in rights should be subject to strict physical and procedural regulations.At present,the essential terms of the government step-in rights are relatively broad,and there are more vague expressions in the provisions.The lack of restrictions on the government step-in rights has given government a great right of discretion,which may lead to the government's abuse of step-in rights.It could also result in the infringement of the legitimate rights and interests of private parties and other interested parties,and even social public interests will be harmed.In order to make reasonable restrictions on the applicable conditions of the government step-in rights,it is necessary to further supplement and improve the provisions of the current essential terms.As an administrative act,the exercise of government step-in rights should be subject to strict procedural restrictions.The current government step-in rights lacks corresponding procedural restrictions,and specific procedures should be established.The restrict procedures can not only effectively regulate the exercise of government step-in rights,but also help private parties and other interested parties actively protect their legitimate rights and interests.