Public-private Partnership Legislation Research Articles

The Legislative Defects of Public-Private Partnership in China and Lessons Drawn

Over the recent decades of economic growth, the Public-Private Partnership (PPP) has been an emerging business model for the Chinese government to establish an efficient relationship with the private sector for public policy. However, there exist obstacles to truly implementing a PPP in place. Apart from inexperienced PPP implementation, the lack of appropriate legal guidance is another major barrier to carrying out a PPP project. A shortage in a well-structured legal system, encompassing relevant legislative deficiency, leaves the scholars the duty to navigate the way for enhancing legislative structure for PPP. Even loads of research have been done on defining the role of the government and the private capital, in hopes that the risk-bearing process involved in a PPP project would be properly designed. But little discussion thereof has been carried out, combining the analysis with the legal nature of public-private partnership itself. Therefore, this paper presents a theoretical framework for examining the legal nature of PPP and analyses the legislative defects regarding PPP with a case. In this paper, the fragmented nature of PPP legislation in China is figured out, pointing to the absence of laws with higher hierarchies regulating PPP, which reveals the vague legal nature of PPP contracts and little legal constraints on the government. What is also surfaced from the fragmented and chaotic PPP legislative state is the ill categorized legal nature of the government, with overlapping roles from different governmental departments, exacerbating the unevenly distributed risks imposed on different parties involved in PPP. This paper then ends with conclusions extracted from experience drawn from both inside and outside China, particularly making an analogy with France, and stresses the need to build a more detailed and logically clarified legislative system for PPP.

Законодательство как фактор развития государственно-частного партнерства в сфере информационных технологий

Introduction. Public-private partnership (PPP) in world practice has established itself as an effective tool for interaction between business and government in the implementation of socially significant projects. The state got the opportunity to attract a private investor to solve strategic problems of social development. Information technology (IT) is no exception. In the context of globalization and digitalization of the economy, development of information technology sphere is becoming highly relevant, since it determines the level of information security and development of the country as a whole. Theoretical analysis. The main research method was the analysis of the basic laws governing public-private partnerships in the IT sphere both in Russia and abroad, which made it possible to identify the differences in the PPP legislation of different countries. Empirical analysis. The analysis of the legislation of different countries in the field of public-private partners in relation to the IT industry enabled the authors to divide countries into four groups, depending on the characteristics and level of its development. The first group of countries is characterized by the absence of a law on PPP at the state level, application of international legal norms and availability of methodological recommendations in the field of PPP. In the second group, countries have a fundamental law on PPP without specifying the spheres of its application, or a list of spheres has been formed and it includes the IT industry. In the third group, there is a general law on PPP with a list of specific areas that does not include the sphere of information technology. The fourth group of countries has no legislation on PPP. Results. The authors identified the problems of legislation in the field of public-private partnership in relation to IT projects. In particular, it was determined that Russian laws in the field of PPP have relatively more specificity in relation to IT projects than foreign ones. However, this is far from always being good and creates artificial restrictions for the development of this mechanism for attracting a private partner to finance IT projects that are significant for society. The highlighted shortcomings of the Russian legislation will help to improve efficiency and controllability of PPP projects in the IT sphere, when eliminated.

Государственно-частное партнерство в Тюменской области: взгляд из прошлого в настоящее

<span>В статье рассматривается специфика становления и развития механизма государственно-частного партнерства (ГЧП) в Тюменской области. По мнению авторов, сотрудничество региональных властей с частным капиталом длительное время осуществлялось и до сих пор зачастую продолжается в виде проектов квази-ГЧП, которые хотя и выполняют похожие функции, в полной мере не могут быть отнесены к государственно-частному партнерству. Особенностью большинства таких проектов, реализуемых в Тюменской области, является их принадлежность к ресурсодобывающей отрасли. Наиболее распространенные в РФ инфраструктурные проекты в жилищно-коммунальной, социальной и энергетической сферах в Тюменской области стали появляться по мере формирования законодательства о государственно-частном партнерстве и на сегодня получили довольно широкое распространение в трех секторах экономики: жилищно-коммунальном хозяйстве, энергетике и социальной сфере.</span>

민관협력법제의 법적 쟁점에 관한 고찰

민관협력법제의 법적 쟁점에 관한 고찰

How Brexit Might Pave the Way for a PPP Directive in the EU in a Value for Money Perspective

The common law and the civil law tradition define a PPP (public-private partnership) contract differently. The continental EU member states have a legal tradition based on civil law, thus their law derives from a set of written rules or a civil code. Hence, the public law provides the legal framework within which PPP contracts must be negotiated, quite opposite to a private contact which is subject to the legal principle on freedom of contract. In the common law member states such as the United Kingdom, Ireland and Malta, the legal tradition is based on case law and precedents, and thus commercial transactions and competition. In these member states, the legal approach to a PPP contract is based upon the same legal tradition as private contracts. Legal negotiations and the resulting regulations within the EU are a compromise between the different legal systems and Brexit weakens the voice of common law in the EU. Regulating by legal statutes in general goes against the legal tradition in the UK. Brexit might tip the balance between civil law and common law in the EU and thus Brexit might pave the way for a legal framework on PPP in the EU. In addition, Ireland already has a national PPP legislation which is why a compromise between Ireland and the continental member states could be within reach.

Public-private partnership in higher education and science in Russia

This article represents the first study of legal problems and the potential development of publicprivate partnerships (PPP) in science and higher education in Russia. The author considers PPP to be the most flexible and promising instrument for attracting private investments for such infrastructure, which support required enhancement of cooperation between scientific and educational institutions and real companies, and therefore facilitates achieving national goals and strategic tasks for the development of science in the Russian Federation. Compared to ordinary models of cooperation between the public and private sectors, this approach represents closer cooperation of scientific and educational potential of the public sector with investment, technology, and industrial resources from the private sector. At the same time, the government and universities themselves, competing for students and financing, more than ever require resources for infrastructure development. The author analyses advantages of PPP models for both the private and public sectors, general conditions for development of this mechanism in the country, and how public-private partnership in the traditional sense in higher education and science in Russia has better prospects than elsewhere, such as Great Britain, where higher education is private and in the best case partially financed from the public budget. Furthermore, the government does not play a considerable role in managing educational organizations and does not own its facilities. At the same time, considerable disbalances between needs of economic and innovative development of the country and the quality of PPP legislation is clearly noted, as well as particular legislative problems, and the author provies recommendations on how to improve laws.

Jak PPP może wpłynąć na rozwój regionalny Europy Środkowo-Wschodniej?

Głównym celem niniejszego artykułu jest zaprezentowanie związku pomiędzy partnerstwem publiczno- prywatnym (PPP) a rozwojem regionalnym Europy Środkowo-Wschodniej w kontekście potencjalnej atrakcyjności inwestycyjnej regionów Europy Środkowo-Wschodniej. Na podstawie badań desk research, studium przypadku n = 90 projektów PPP i przeglądu literatury przedmiotu zbadano wpływ projektów PPP na rozwój regionalny Europy Środkowo-Wschodniej w kontekście atrakcyjności inwestycyjnej tych regionów, które realizują projekty PPP. Ponadto dokonano przeglądu kluczowych wyzwań, jakie stoją przed państwami Europy Środkowo-Wschodniej, a są związane m.in. z niewystarczającym poziomem rozwoju infrastruktury, którą cechuje wysoki stopień zużycia czy wysoki poziom długu publicznego brutto, w szczególności na poziomie jednostek samorządu terytorialnego (JST). Artykuł przedstawia również syntetyczną charakterystykę ram instytucjonalnych, państw Europy Środkowej i Wschodniej, niezbędnych do wspierania rozwoju PPP oraz przedstawia propozycje koniecznych zmian regulacji w zakresie PPP, aby przyspieszyć rozwój regionalny Europy Środkowo-Wschodniej w kontekście atrakcyjności inwestycyjnej. Ponadto JST w Polsce nie wykorzystują efektu synergii (dla wzrostu rozwoju regionalnego) z dostosowania realizowanych projektów PPP do regionalnych strategii rozwoju czy innowacji.

OVERVIEW OF LEGAL FRAMEWORK OF PUBLIC PRIVATE PARTNERSHIPS IN ALBANIA

Albania has made positive steps in improving the legal framework of Public Private Partnerships (PPPs) and the political environment. The laws have encountered several amendments in the last 10 years, but there is still room for improvement. Albania has incorporated the EU directives and the UNCITRAL recommendations into PPPs legislation and we have to admit the effectiveness of the law 125/2013 “On concessions and public private partnership.” This paper aims to present a view of the actual legal and sublegal framework of PPPs in our country and to note the development of this sector in potential benefits for both sectors, private and public.Moreover, judicial quality has improved in Albania even though there is room for further improvement. Moreover, there has been noticed a strengthening of institutional capacity due to co-ordination of consultants and external advisers, but government agencies are at the early stages of developing PPPs. The political environment for PPPs is favourable, especially in the energy and transport sector. Further improvement is required in the transparency and fairness of procedures in practice.

A review of emerging trends in global PPP research: analysis and visualization

The last decade has witnessed rapid development in the literature on public---private partnerships (PPPs); however, there have been few attempts to map the global research in this domain. To identify the state of the field and trends in PPP research, the CiteSpace software package was used in this study to conduct a series of content analyses and examine global patterns among publications, including the distribution of core authors and institutions; high-frequency categories and keywords; journal and author contributions; highly cited papers and hot topics of research; and trends with regard to co-author analysis, co-word analysis, co-citation analysis, and particularly cluster analysis. We present all research focuses in a scientometric way and arrive at the following findings. First, the most significant developments and progress in PPP research have occurred primarily in China, the US, the UK and Australia. Second, the existing studies in the field of PPP research focus primarily on Engineering, Business and Economics, and Public Administration. Third, the emerging trends in PPP research have shifted away from concession pricing and concession periods, PPP legislation, procurement management, critical success factors, value for money and PPP project governance toward risk allocation, performance evaluation, renegotiation of concession contracts, real option evaluation and contract management, which are likely to define the new research frontier in the field of PPP research.

Public Private Partnership in Transportation: The Case of the Washington State

While the world has changed dramatically in the last five decades or so, transportation has not been able to keep pace with the overall development. However, in order to ensure prosperity of a country or a state, it is imperative that the ability to move people and products must improve. This paper examines the status of transportation infrastructure and its funding in the State of Washington, USA and suggests some new approaches towards public-private partnership (PPP) in the area. In the process, the success and some of the challenges of PPP are also discussed. In the US, traditionally, people were not charged direct tax such as a toll for using the roads, the primary mode of financing transportation being gas tax. The new sources of revenue collection being developed include: Specific roadway pricing Mileage-based user fees Real-time variable rate roadway pricing. Traditionally, in the US, the public sector shouldered the main responsibility for managing transportation�acquire right-of-way (ROW), design, finance, operate, own, and maintain while the private sector was only allowed to build roads following all the regulation and permits introduced by the government. The reformed PPP model awards ‘design-build’ contracts on a competitive ‘best-value’ basis instead of the conventional ‘low-bid’ basis and thus turn over the design build responsibility to the private sector leaving with the government the financing and maintenance of the roads. The idea is to give road to everybody while allowing the private sector to earn some profit and the public sector to save some money. However, PPP could face a problem if: the traffic and revenue estimates are wrong traffic and revenue risks are taken by private sector but at a huge price construction costs are underestimated the people do not accept the proposition the PPP legislation is not favourable. For any infrastructure project such as transportation to succeed, what is most critical is a set of factors including feasibility, essentiality, reliable revenue forecasts, collateral, credibility, political stability, and transparency. Above all, the government has the responsibility to all its citizens while the private sector is accountable to its stockholders and business partners. What is therefore important is to see how the two parties meet their obligations while building a suitable transportation infrastructure.