Research On Withdraw Mechanism Of Sponsors In PPP Projects Under Insufficient Demand

In recent years,the Public-Private Partnership has gradually become one of the major infrastructure supply projects in China.Through reasonable risk sharing between the government and the sponsors,the PPP project can use the sponsors 's technological and financial advantages to reduce the government 's financial burden,and improve the quality and efficiency of public service supply.However,due to the long period and the huge amount of investment,PPP projects usually face greater market demand risks.In the case of insufficient demand,the Sponsor reasonably withdraws early and improves the project's ability to resist risks becomes a real demand.For the Sponsor,there are incentives to withdraw from PPP projects due to conflicts of interest with the government and its own financial constraints;for the government,on the premise of ensuring that project efficiency is not affected,to reduce financial burden and To achieve the goal of maximizing total social surplus,there is also a motivation to terminate the contract with sponsors.Therefore,how to rationally design the withdrawal mechanism of the Sponsor of PPP projects under insufficient demand has become one of the urgent problems to be solved to ensure the healthy and orderly development of PPP projects.Based on the maximization of social welfare,this paper considers the withdrawal of sponsors as a way of sharing market demand risks under the premise of ensuring the continuity and stability of public goods and services under the premise of insufficient demand for public goods and services.Make decisions as a government strategy.By constructing a mathematical project to analyze the boundary conditions of the termination of government and sponsors under insufficient demand,identify and analyze the key influencing factors and mechanisms of the termination of government and sponsors.The results show that the conditions for the termination of the contract between the government and the sponsors are affected by the capital cost of the existing sponsors and the new sponsors,the market demand risk,the time of termination,and social unnecessary losses.Only when the social unnecessary loss is below a certain value,the government has the possibility to terminate the contract with the sponsors party,and the longer the sponsors party operates the project,the smaller the government's decision-making room,the easier it is to lose initiative in the decision-making process.In addition,the ability to find a suitable receiver is crucial for the government to design a sponsors withdrawal mechanism.The purpose of the research is to provide a basis for government strategic decision,with a view to comprehensively achieving the objectives of ensuring the reasonable return of the sponsors and reducing the government debt risk,and improving the anti-risk ability and sustainable operation ability of PPP projects.