Legal aspects of privately financed infrastructure projects (PFIPs) in China—the case for international standards

This thesis discusses the reform and improvement of Chinese legislation on Privately Financed Infrastructure Projects (PFIPs), to develop the PFIP model in China, under the protection of Chinese laws, so that its implementation in China may reach international standards. Existing Chinese laws are found to be insufficient in reducing risks to PFIPs because of certain shortcomings. Therefore, it is necessary to reform and improve Chinese legislation on PFIPs, to prevent their failure. The Legislative Guide and Model Provisions drafted by UNCITRAL are treated as the international standards to guide Chinese legislation reform on PFIPs. Other countries’ laws on PFIPs provide supplementary reference. This thesis addresses its aim in four steps: First, the current Chinese legislative and institutional framework on PFIPs is reviewed, with discussion on establishing a more appropriate legislative and institutional framework, to facilitate the development of PFIPs in China through the principles of transparency, fairness, long-term sustainability and the elimination of undesirable restrictions. Second, Chinese laws on the concessioner selection procedure in PFIPs are reviewed, with discussion on possible improvements to the laws to achieve international standards of fairness and transparency. Third, current Chinese laws and policies which affect the various contracts involved in PFIPs are reviewed, with discussion on these may be improved to achieve international standards. Fourth, the PFIP dispute settlements that may be used in China are reviewed, with discussion on the necessity to remove certain undesirable restrictions in relevant Chinese laws. Following the rapid rise in the practical use of PFIPs in China, this thesis offers a strong theoretical basis for suggesting a reform of Chinese legislation on PFIPs. It also provides a general basis for any national reform of laws on PFIPs in any other countries.