Legal Thoughts On PPP's Risk Of Oversea Infrastructure Investment

Public-private Partnership(hereinafter referred to as PPP)develops rapidly in China these years,different PPP projects,especially the infrastructure construction in Hard Society areas have sprung up in different regions.Since the One Belt One Road(hereinafter referred to as OBOR)strategy had implemented,interconnectivity of infrastructure is the key point of cooperation among China and the countries or regions along the OBOR and also the precursor of OBOR strategy,which presents new opportunities and corresponding challenges for Chinese social capital's going-out on oversea infrastructure investment.PPP is the most common model for investing oversea infrastructure projects internationally and the advantages on providing public products and services with government have been approved although PPP emerged from nineteen-seventeens.When it comes to the running of PPP projects,the risks among PPP projects must be focused as well.Because the PPP projects' term from approving,bidding,construction,operation to exit may last for two or three decades and market is in a dynamic change as well as the government's policies.Since the30-years plan will inevitably suffer from many uncertainties and the actual situation may also deviate from the plan,the prediction of risk and its response in different stage will be held in great account.Legal risks are most noticeable among PPP's different risks.The author intends to read the literature materials,analyses the features of infrastructure construction projects along OBOR and researches the PPP cases of the countries like British,France,Canada or Australia,in which the PPP is relatively andwidely used,and the countries along OBOR to acknowledge the type,finance structure and legal risks of PPP.After clarifying PPP's essence,of which is finance,the author intends to discuss the major participants and its legal relation,through which to analyze the risks and its response in different stage.The main content of this paper is divided into three parts as follows:In the first chapter,the author intends to introduce the PPP investment's features which determine the widely use of PPP.The author tries to define infrastructures by combining the theoretical development and conclude infrastructure investment's features.Then analyze that the essence of PPP is a kind of finance mode and in the form of cooperation with the host government,which will be the preparation for the discussion that follows.In the second chapter,the author intends to analyze the different legal risks on different PPP project's stages along OBOR for private investors.By observing the common structure of PPP project,the author figures out the major participants,including the host government,social capital and SPV,financing institutes and other participants,and their typical legal relations.At the same time,the author analyzes the legal risks on different PPP stages,which can be divided into investment access stage,construction and operation stage and exit stage after clarifying the difference between risks and legal risks.In the third chapter,the author intends to discuss the detail response measures of those legal risks mentioned in the second chapter.First of all,by mentioning some principles to face the risks,including mutual beneficial and win-win principle,reasonable risks allocation principle,the combination principle of domestic rules and international standards.Furthermore,specifies the countermeasures against different stages of legal risks,including the due diligence with full caution,localization response,flexible exit mechanism and also the support from Chinese national level.