Core Insights - The third China PPP Legal Forum highlighted the need for tailored approaches to resolve disputes in existing PPP projects, emphasizing that reconciliation, mediation, and expert evaluation are efficient and low-cost methods, while arbitration and litigation should be last resorts [1] Group 1: PPP Development and Challenges - Since its promotion by the Ministry of Finance in 2014, PPP has experienced a tumultuous development in China, initially seen as a solution to local government financing issues, with total investment in the PPP management database exceeding 16 trillion yuan at its peak, covering various public service sectors [1] - Starting in 2017, the Ministry of Finance issued multiple documents to clean up and regulate the PPP market, addressing issues of "aberration" and "generalization," leading to a significant stock of existing PPP projects by February 2023, with total future government expenditure responsibilities amounting to 14.34 trillion yuan [1] Group 2: Dispute Resolution in PPP Projects - With the cancellation of certain PPP regulatory documents, project management has shifted from centralized reporting to self-negotiation between government and private entities, resulting in nearly 80% of projects facing operational difficulties and frequent disputes [2] - Local governments are struggling with issues such as insufficient fiscal capacity due to economic downturns, misappropriation of project funds, and new officials neglecting previous commitments, leading to notable cases of unpaid debts and delayed financial reviews [2] - Social capital faces challenges including inadequate financing, operational inefficiencies, internal disputes within consortiums, project delays, and cost overruns, with some construction-focused firms lacking the necessary operational expertise to achieve expected project outcomes [2] Group 3: Legal Strategies for Dispute Resolution - In disputes involving social capital and local governments in existing PPP projects, reconciliation and mediation are preferred, with approximately 80% of cases resolved through these methods, followed by expert evaluation, arbitration, and litigation [3] - Litigation can be categorized into civil and administrative lawsuits, with administrative lawsuits placing a heavier burden of proof on the government but having a shorter statute of limitations of 6 months, while civil lawsuits have a 3-year statute of limitations and are more flexible in procedure [3] - Social capital should choose the most advantageous legal route based on specific circumstances, such as opting for administrative lawsuits for larger project amounts or when local interference is a concern, and civil lawsuits when counterclaims or procedural flexibility is needed [3]