Written by Zhang Ke. November 2nd, 2015.
On November 2nd, 2015, Lawyer Hu Weiming, the original partner of the Shanghai Zinger Law Offices, gave a lecture at the SUFE LAW SCHOOL FORUM. The topic is the PPP transaction structure design and the legal risk management.
Lawyer Hu Weiming shared his experience and knowledge mainly from the three parts, the strategic significance, the transaction structure design and the legal risk in the specific application. He mentioned the important principle: when government decided to choose the financing way of PPP, which is the innovation of the private capital investment, the match between the risk and return and solutions to risks.
He told us in the transaction structure design that governments have to consider the project from qualitative and quantitative. There is a limitation of finance which is the cost of the PPP project must be controlled less than 10% of the one year budget. Contracts are the life and core for the PPP project, which differ from the civil contracts and administrative contracts. In conclusion, both sides have to recognize clearly the law rights and obligations. The value behind the PPP mode is to form a long-term cooperative relationship based on the concession agreement in the field of infrastructure and public services.
In the end, Lawyer Hu had an active interaction with audiences. He answered lawyers and teachers professionally. The whole lecture ended in the warm applause of the participants.