Survey and Suggestions on the Current Situation of PPP Model in Henan, China

Abstract

The public-private partnership model, also known as PPP, which means cooperation between government and social capital, is the model for project operation in public infrastructure and has become one of the most popular models in the Chinese construction industry today. The aim of this study is to understand the development of PPP projects in China's Henan province today, the challenges faced, and to try to give sound advice in light of the major studies on the operational process of the PPP model in Henan. This study conducted a literature review to understand the development of PPP projects in Henan, and through the study learned that PPP projects in Henan, China are currently in a transition phase. The questionnaire was used to understand the core steps and challenges in the actual operation of PPP projects. According to the questionnaire, respondents generally agreed that current infrastructure development in China's Henan province is very good, but PPP projects are only average. In the survey of the most prominent shortcomings of PPP projects in Henan, "widespread default", "irregular project operation" and "weak market supervision" ranked the top three. Overall, the development of PPP projects in Henan has not been good, but it has not been bad either, and there is still room for improvement. Finally, based on the results, literature was reviewed and experts were interviewed to give sound advice. By creating a special bill for PPP, while pooling talent to create a dedicated body for guidance and oversight to ensure that PPP projects deliver their full value, this could be the solution to the current challenges.