[PPP column] Yunya's "PPP Concise Operation Manual" officially released

In terms of local governments, too much emphasis is placed on the promotion of economic growth by financing, while ignoring the shaping of long-term mechanisms; too much emphasis on short-term investment effects and contempt for long-term risk prevention. In some areas, there has been a rush of ups and downs. At the same time, the operational experience and practical ability of relevant personnel have yet to be improved. The "two arguments" have not been carried out in a down-to-earth manner, and the project implementation is not standardized.

   In terms of social capital, it pays attention to short-term interests and despise long-term operations. “If the project is built, it will take money and the project will leave.” Some social capital earns short-term profits by inflating project costs. Many social capitals have insufficient self-owned funds. "Penetration" refers to capital borrowing, and "small horse-drawn carts." In this case, it is difficult for social capital to share long-term risks, and PPP is a good mechanism that is difficult to play its due role.

   In terms of intermediary organizations, PPP has just started, and the experience of intermediary organizations is insufficient. In the process of gradually becoming familiar with PPP related laws, systems, and taxes, “learning in the middle school and doing it”. The intermediary market lacks industry self-discipline and effective government supervision, and the service level needs to be improved.

Only by doing a real, normative PPP can we inject lasting momentum and vitality into the development of PPP. China is facing an important historical opportunity period from high-speed growth to high-quality development. After experiencing rapid promotion in the past few years, PPP is entering a period of adjustment and standardization, and has broad prospects. Regardless of whether it is for the government or the social capital side, the full life cycle of the PPP project cannot be separated from the effective participation of lawyers. Otherwise, it will bring huge risks and hidden dangers to the PPP project.

PPP involves various social fields, multiple legal relationships, complicated and variable legal and policy documents, numerous operational procedures, and long project cycles. It is both an opportunity and a challenge for the entire lawyer industry, and requires a high level of comprehensive quality for lawyers. To this end, Jiangsu Yunya Law Firm has set up a PPP legal research center. The partner of Shao Jian, a partner with rich experience in practice, and Mr. Chen Zhaoli, a partner, jointly led the formation of a PPP professional lawyer team, dedicated to PPP related subjects (government side, Social capital parties and consulting organizations provide more high-quality, professional and efficient legal services throughout the life cycle of PPP projects. In order to help PPP related parties fully understand the meaning of PPP, correctly understand the respective positioning and mutual relationship between the government and the social capital, ensure the implementation of PPP regulations, and prevent risks in advance, specially prepare this concise operation manual. If there is any ambiguity, welcome Call us.

 

Jiangsu Yunya Law Firm

PPP Legal Research Center

March 30, 2018