Stick to the bottom line of principle and strive for win win cooperation


In 2018, the exchange accepted the entrustment of a company to provide the whole process legal services for it to undertake the PPP project of a town comprehensive development.

[Key words] Urban Comprehensive Development Consortium, cooperation agreement, income distribution

[Project information]

The project belongs to PPP project of urban comprehensive development, and the cooperation contents include planning and design consulting service, municipal infrastructure construction, public service facilities construction, characteristic industrial facilities construction, and urban comprehensive operation and management.

The client of the project is one of the perennial legal service providers of the Institute. He has advanced project experience in infrastructure construction and park development and construction. Therefore, he plans to participate in the bidding of a PPP project for the comprehensive development of a town. Based on the deep friendship and tacit understanding established in the long-term legal cooperation between the company and the exchange, the company entrusts the lawyer of the exchange as the legal service provider of the project to provide legal consultation, agreement drafting, legal document review, transaction negotiation and other special legal services.

[Difficulty or novelty of the project]

The novelty of this project lies in:

The project is the first PPP project of urban comprehensive development in the region based on the concept of international community.

The project has a rich business structure, which is composed of hotel industry, medical and nursing industry, cultural and creative industry, leisure and entertainment industry and education industry, and is committed to building an international industry city integration demonstration town.

The difficulty of this project lies in:

First, looking for partners and determining cooperation mode. Although the client has advanced experience in the development and construction of the park, it focuses more on the operation of the park and does not have relevant construction qualification. In order to meet the requirements for the qualification of bidders in the bidding documents of PPP projects, it is necessary to find partners to participate in the project and design the cooperation mode.

Second, negotiate with partners and sign cooperation agreements. In order to smoothly realize the reasonable distribution of the project income between the client and the partner, in the process of participating in the commercial negotiation with the partner on behalf of the client, we adhered to the bottom line principle and successfully solved the problem of profit distribution between the two parties through a reasonable way.

Third, the project legal compliance procedures. In recent years, the government has tightened the supervision of PPP projects. Therefore, whether the project can successfully complete the preliminary procedures and obtain the government budget arrangement is the key issue concerned by the client and our lawyers.

[Lawyer response]

In order to complete the project, our lawyers strengthen the communication with the client, and go to the project site for many times to provide on-site services, and communicate with the client and its partners on the project. Firstly, from the perspective of the legal and compliance requirements of the project itself, referring to the latest laws and regulations, we sort out the key issues of the project and determine the negotiation plan; secondly, we comprehensively consider the client's commercial purpose Finally, on the premise of adhering to the legal and commercial bottom line, the inherent risks of the project are prompted and the risk control scheme is proposed, so as to minimize the investment risk of the client and ensure the smooth progress of the project, so that all parties can cooperate and win-win.

[Achievements and summary of legal services]

By the end of 2018, our lawyers had provided early consultation, legal advice, drafting the "cooperation agreement" between the client and other partners, and full participation in business negotiations. Now all parties have signed the "cooperation agreement", successfully realizing the client's business objectives and gaining the client's recognition.