Study On Renegotiation Mechanism Of PPP Projects In Infrastructure Area

Since 2014,China has begun to promote the use of Public-Private Partnerships models in the field of infrastructure,in order to transform government functions and public service supply methods,control local government debt risks,and upgrade economic restructuring.However,PPP project renegotiation is unavoidable due to multiple factors such as multiple participants,complex interest relationships,long operating period,complex and incomplete contract structure,etc.First,based on the existing PPP project renegotiation related literature,this article explains the origin and simplification of the PPP model,the development of contract theory and the theoretical basis of renegotiation: incomplete contract theory,and analyzes the definition and classification of PPP project renegotiation.Secondly,by analyzing the literature,this article identifies several situations that should not trigger PPP project renegotiation,and analyzes the subjective and objective factors that trigger renegotiation.At the same time,based on 100 samples of China’s infrastructure area PPP contracts,it analyzes the provisions that trigger renegotiation in China’s PPP contracts.Next,this article discusses the influencing factors in the renegotiation process from the macro factors: moral hazard,major changes in the external environment and micro factors: the professionalism of the negotiator,the negotiation strategy,and the negotiation atmosphere,and uses the renegotiation flow chart to preliminarily set the renegotiation process and clarify the three results of the renegotiation.Finally,this article proposes the optimization proposal of the renegotiation mechanism from three aspects: clarifying the legal attributes of the PPP contract,optimizing the renegotiation trigger mechanism,and optimizing the renegotiation process.By sorting out and optimizing the entire renegotiation mechanism,this article can improve the renegotiation personnel’s understanding of the entire negotiation mechanism,improve the efficiency of PPP project renegotiation,and then contribute to the standardized development of PPP projects.