PPP law to escort long journey

Recently, private investment growth fell significantly, causing widespread concern in the government level, experts and private business operators. As a model of cooperation between the Government and private investment in social capital important channels (PPP), in the implementation process, also encountered a variety of "glass door" "revolving door" "spring door." PPP smooth progress, not only related to stimulate private investment in energy and potential, help steady economic growth overall, is to promote the development of mixed ownership, and improve the basic economic system of our country question of the meaning.
Experts call for a high degree of rule of law in China should promote the construction, speed up the legislative process related to PPP, the Government and the social capital clear rights and responsibilities, promoting the risks and benefits can be expected to promote the fundamental standard operation and healthy development of cooperation between the Government and social capital.
Focus digestion uncertainty
At present, China is vigorously promoting the government and the social capital model of cooperation, the Ministry of Finance set up a PPP integrated information platform intended to be included throughout the PPP mode of investment project 7721, a total investment of about 8.8 trillion yuan. Meanwhile, although the State Council, the Ministry of Finance has issued a series of related documents, but the field is still lack of uniform legislation.
Recently, Deputy Minister of Finance Liu Kun at the State Council Information Office press conference on the promotion of private investment in the healthy development of the situation, held a special inspection, said the next step, the central government will continue to actively promote the PPP legal system, strengthen policy coordination and integration.
In addition, the Treasury Department of Treaty and Law Director Lee Seung also said that the Ministry of Finance has set the legislative working group to study the drafting of the "government and social capital Partnership Act (draft draft)" and has sought the various departments of the State Council and local financial departments advice is stepping revised and improved.
Recently, the Chinese Institute of Fiscal Science, also held PPP legislative forum. At the forum, leaders from Henan, Inner Mongolia, Hubei and other provinces to promote the PPP the financial sector, but also reflect the work encountered many difficulties and problems need to break through legislation, particularly in legislation to regulate the operation and greater certainty of social capital.
"The government and social capital for a long-term cooperation, as short as 10 years or as long as 30 years, to be sustainable and successfully do this job, you need a sound scientific and reasonable legal system to regulate the operation and development of their health, need urgently address this issue. "Director of Finance Department of Finance and the international Office of Shandong Province Li Xuechun said.
"Solid legal basis is the cornerstone of security PPP promotion. Although our launch of this model is not a long time, but the project has exposed many problems in practice, and further highlights the urgency and importance of PPP legislation." China Financial Science Liu Shangxi dean of representation.
Liu Shangxi stressed that the fundamental objective of PPP legislation is to resolve the uncertainty, reduce the degree of uncertainty, through legal norms and constraints, specifically related to the subject of rights and responsibilities, government, social capital can be expected behavior, and risk earnings also can be expected.
Truly win-win situation all parties
In private investment policies recently undertaken by the State Council to implement the special inspection, the ability to participate fully in the social capital of the PPP is a major concern. Recently held a State Council executive meeting stressed the need to continue to deal with the relationship between government and the market, and create a fair and non-discriminatory investment environment, accelerate the clean-perfect laws and policies related to private investment, private enterprises and state-owned enterprises to effectively solve the problem of fair competition.
"PPP is a new model of government, market, social division of labor provision of public services, public governance and national governance embodied in the field of public service, is nothing less than a major reform of the market-oriented reform itself." Liu Shangxi believe, in this mode, the government and the social capital work together to establish an equal partnership.
Liu Shangxi stressed that the essence of PPP is cohabitation, the kernel is an equal partnership, which is the logical premise and basis of PPP legislation. "Therefore, PPP legislation should be positioned in the civil legislation, rather than the executive and the legislature, should play down the whole law approval, the approval of color, strengthen the government's responsibility and obligation rather than administrative authority itself."
"PPP legislative aspects to solve the problem? Mainly institutional dealing with government and market, government and border relations business, building government and social capital both equal and cooperative contractual relationship, establish the spirit of contract, to establish the integrity of the government, to improve the supply of public goods mechanism. "Deputy Director of the Ministry of Finance and law Article Yorinaga Tim said.
For some parts of the PPP merely as a means of financing public welfare, Yorinaga Tim said that this was contrary to the spirit of the PPP model, therefore need to establish equality, cooperation through legislation contractual relations, property rights system PPP projects. "PPP model the emphasis is on full life cycle project management, government and social capital is the 'marriage' is not a one-shot deal, the latter will not operate and maintain public goods and services provided throwing back of the head."
PPP Legislation Research Institute for Fiscal Science Research Group China believes that the Legislative be results-oriented, reform is not suitable for the healthy development of institutional mechanisms for PPP, PPP Development of completely breaking the "glass door" "revolving door", "Spring Gate" and can not let past the traditional institutional mechanisms for the smooth progress of the shackles of PPP projects. At the same time, the parties to establish clear responsibility and rights in favor, interests and norms of risk allocation rules, the parties to realize equality, cooperation, mutual benefit and win-win situation.
Strengthening financial risk management
PPP legislation, what are the key and difficult problems to be solved? Experts said that the financial risk and debt management, value for money evaluation, social capital exit, insolvency, tax accounting, information disclosure and other special purpose vehicle (SPV) is the key.
Objective PPP financial management is to prevent, control financial risks. At present, the financial risk of the PPP from the public responsibility for multiple related expenditure in the public sector, the lack of governance based on a high degree of unity financial risk assessment, project financial commitments (expenditure responsibilities) are not included in government debt management.
For this reason, experts suggest, PPP should focus on fiscal management will help standardize the project smoothly, the proposed project will be financial commitments (expenditure responsibilities) into the government debt management, the assets and liabilities of the PPP to join the government formed the consolidated financial statements, with the national highly unified financial governance risk assessment.
For value for money evaluation, expert advice should be strictly in accordance with existing policies to implement the evaluation value for money, cities and counties within a year a review and evaluation of all PPP projects should not exceed 10% of the total expenditure of the general budget of the year; at the same time, expedite the preparation of standardized government's balance sheet and cash flow, estimated future cash flows and solvency of a period of financial capacity to assess and lay a solid foundation.
Around the promotion of PPP in social capital can quit, how to quit popular attention. "Social capital can flow out of the question is the nature of the problem of property rights, PPP should encourage the flow of property rights, not limit the advance and retreat of social capital is key to ensuring the successful completion of the project and simply from the international experience, the rational flow of social capital will produce more more positive effect. "Liu Shangxi representation.
Tax Issues for PPP projects, Chinese Academy of Sciences postdoctoral Sun Jing Finance suggested that two aspects from the tax legislation and tax policies to support design ideas. "Tax legislation approach, with the economic nature of the project should be starting to define taxation model, from the conduct of the nature of the project Reconstruction of tax mode of thinking, from the common characteristics of the project understand the project design tax incentives; support tax policy design should be clear tax Shipping body, taxes, concessions and efforts and unified collection and management system, reducing discretion. "Sun Jing said.
In addition, the local financial sector also generally reflect, PPP legislation should be resolved with the Government Procurement Law and Bidding Law of convergence problems.