Research On The Local Government’s Cooperation System With Special Funds For Bond And Social Capital

The public-private partnership(PPP)model and special funds for local government bond have strong potential for complementary benefits.First of all,the combination of the two models has a significant beneficial effect on the financing of local infrastructure construction and local bond management in China and meets the practical needs of the local government’s cooperation system with special funds for bond and social capital.On the one hand,in the practical field of local infrastructure construction financing,the PPP model and the issuance of special bonds for local governments are both important financing means for local governments in China to participate in the construction of infrastructure public welfare programs.The combination of the two modes can increase the utility of local governments for infrastructure construction with limited funds.On the other hand,for the management of local bonds in the budget law,the special bond t system can make implicit bond t explicit and regulate the borrowing behavior of local governments.PPP projects have the advantage that local governments do not bear the bond t risk directly.The combination of the two models can effectively solve the hidden bond t problem of the local government.Secondly,the public-private partnership model and special funds for local government bond also have complementary effects.Special funds for local government bond can supplement the funding gap of PPP projects,while PPP projects can also solve the limitation of special funds for bond and provide experience for its operation.In order to standardize the cooperation between local governments and social capital with special funds for bond,it is necessary to construct a theoretical paradigm that can unify the PPP system and the local special bond t management system involving many crossing fields,so as to rectify the complex legal relationship caused by the combination of public and private jurisdictions.The legal system includes the Budget Law related to the cooperation between special funds for bond and social capital,the management system of special funds for bond,the PPP management system and many other legal systems.In the above-mentioned legal system,especially in the field of PPP system,a large number of laws,regulations and normative documents have various normative intersections and even normative conflicts.This phenomenon undoubtedly restricts local governments from standardizing the cooperation between special funds for bond and social capital.Therefore,the legal relationships between local government’s cooperation with social capital by special funds for bond should be divided according to the administrative two-stage theory.In this relationship,the actions of the government based on its administratively advantageous position are included in the first stage.These actions are subject to public law,and shall be reviewed as a priority and precedence.In this relationship,the behaviors of the government and social capital based on relatively equal status are included in the second stage.These behaviors apply private law,which affirms freedom of choice in the form of government.The focus of this paper is the administrative two-stage theory to guide local governments to cooperate with social capital through special funds for bond.On the one hand,the capital system of PPP projects and the management system of government bond t funds in the budget law are typical legal system in public law.For acts and legal relations involving these two legal systems,public law shall be applied,and they shall be reviewed on the basis of the principle of legal administration as a priority and precedence.On the other hand,for acts and legal relations in which the local government and social capital are in a relatively equal position,the freedom to choose the form of government should be affirmed.The government should be allowed to subscribe to the registered capital of the legal person for projects that are not of the nature of registered capital by special funds for bond.The government should be allowed to contribute to the legal person capital reserve for projects that are not of the nature of registered capital,and to introduce a valuation adjustment agreement.In addition,the government should be allowed to adopt the "A-B" subcontracting model and the "TOT" sub-item model to standardize the cooperation between local governments with special funds for bond and social capital.