Research On Early Termination Of Financial Compensation In PPP Contract Of H Wastewater Treatment PPP Project

The early termination of the financial compensation clause in the PPP project contract is an important part of the PPP project contract guidelines issued by the Ministry of Finance.It can help the private capital evade some risks during the project construction and operation stage it will increase the enthusiasm of private capital to participate in the PPP project;Formulating rules for the sharing of responsibilities and the distribution of compensation during the early termination of projects can also avoid the mutual excuse of government and private capital when early termination occurs.This article selects the H sewage treatment PPP project that the author once participated in as a case.It analyzes the early termination of the financial compensation plan and finds that there is an overlap in the early termination category and does not take into account the premature termination of the construction period compensation and has not yet recovered the construction period investment book.The financial compensation is irrational and the financial compensation is unreasonable the proportion of liquidated damages is unreasonable and there is no agreement on the early termination of the financial compensation payment method.The financial compensation amount is the focus of early termination of financial compensation.The main concern of the government and social capital parties and the fact that the H waste treatment PPP project terminates the financial compensation clause in advance is still a case of the book value method.In combination with the details of this case the book value compensation method is for this case.It is not reasonable.Regardless of what causes the early termination of the project the project company will suffer damage due to the early termination of the project.Therefore the author uses the"PPP Contractual Provisions Guidance 2017" to advance.Termination compensation calculation method-based on financing method for H pollution PPP projects deal with early termination of financial compensation is calculated and for the situation that may arise during execution financial compensation for the early termination clause H PPP wastewater treatment project has been improved.In addition the author explores the reasons for the early termination of financial compensation clauses for the H sewage treatment PPP project.The main reasons are risk awareness needs to be strengthened the specificity of the project is not fully considered the principle of government subsidy financial measurement is not studied and the PPP is lacking.Relevant professional staff and over-reliance on consulting agencies have raised issues related to raising awareness of risk establishing departments responsible for PPP projects strengthening training of PPP professionals establishing various PPP project financial measurement models and working with PPP experts.PPP application research the introduc,tion of dynamic compensation adjustment mechanism setting of regional PPP project reference compensation program standards and strengthening the improvement of public sector management and control of the improvement program hoping to improve after the H city PPP project early termination compensation clause will no longer A similar problem has arisen and it is hoped that the PPP work level in the H city will be raised from the root and at the same time it hopes to have reference value for the PPP project currently being implemented and ready to be implemented in China create a more fair PPP market environment and increase the participation of private capital in PPP.Confidence in promoting the PPP market Breaking progress.