The following issues must also be considered when the defaulting party`s qualification as a shareholder is to be rescinded as a result of a breach by that unionized party: (1) The withdrawal mechanism should be agreed in advance in the consortium agreement and submitted to the government for registration; (2) The withdrawal mechanism should also be defined in the shareholder agreement and the articles of association of the project company. (3) As part of the increasingly strict policy of changing the shareholder of PPP projects, it is generally necessary to obtain the government`s agreement on the withdrawal of a defaulting part of the consortium. In such situations, it is more likely that the so-owned enterprises in the consortium will become the primary objective of accountability to the government because of their high solvency and strength. Therefore, social investors should attach great importance to the problems related to these offers in the form of a consortium. In some cases dealt with by the authors, private companies boasted of their cooperation, but when it came to due diligence, these private companies were unable or simply refused to provide presentable materials. These attitudes often reflect insufficient strength, irregular operations, or a lack of the partners` basic modern corporate governance philosophy. The consortium leader should pay close attention to such situations. If the consortium contract is concluded due to the limited duration of the offer, it can sow the seeds of litigation for years or even decades to come. Since it is difficult for consortium members to withdraw from the project after a successful tender, the authors propose that the parties concerned, in particular the consortium leader, carry out and carry out due diligence from the partners in the first place. The creation of a consortium can also be a prerequisite for the submission of a call for tenders, since many tenders require a strong and deep experience of the project, which can only be made available by several parties who “pool” their experience as part of a consortium of bidders.
The implementation of the PPP requires the implementation of material construction, operation and maintenance activities. This means that the consortium is usually made up of sponsors representing these interests. In practice, it is normal for the consortium to include a contractor, a service provider, an operations and maintenance provider and an identified lender. As mentioned above, the governance procedures and mechanisms in place during the tendering procedure are generally included in the shareholders` agreement. The sponsors founded the consortium for the sole purpose of offering the PPP project. As can be seen below, it is the consortium that eventually becomes the VPS that implements the PPP project. Sponsors (or their parent companies) often have to provide guarantees or enter into management or service contracts to cover certain liabilities or risks. . . .