Public-private Partnership Projects In China Research Articles

Public-Private Partnerships in the Water Sector in China: A Comparative Analysis

China has emerged as one of the world’s most active markets for public-private partnerships (PPP) in the water sector, while the pace of such development globally has slowed in recent years. This article investigates the dynamics of the development of PPP projects in the Chinese water sector through comparative case studies. Our findings suggest that the unwavering pursuit of PPPs as a policy instrument by the central government, water sector reforms and the effective implementation of local governments are among key factors driving the impressive growth of PPP projects in China.

Public–private partnerships in the water sector in China: a comparative analysis

ABSTRACTChina has emerged as one of the world’s most active markets for public–private partnerships (PPP) in the water sector, while the pace of such development globally has slowed in recent years. This article investigates the dynamics of the development of PPP projects in the Chinese water sector through comparative case studies. Our findings suggest that the unwavering pursuit of PPPs as a policy instrument by the central government, water sector reforms and the effective implementation of local governments are among key factors driving the impressive growth of PPP projects in China.

Identifying Significant Risks and Analyzing Risk Relationship for Construction PPP Projects in China Using Integrated FISM-MICMAC Approach

To meet the growing demand for public facilities and services, many developing countries, including China, have adopted the concept of public–private partnership (PPP). However, there are many risks in PPP projects. Furthermore, these risks affect each other, which may lead to project failure. However, the existing research on the PPP risk relationship has not gone into sufficient detail. Therefore, in order to fill this literature gap, this study proposes a procedural method to analyze the correlation between PPP risks. Firstly, this study, identifies the risks of construction PPP projects in China by combining the literature review with a case study and interviews. Then, fuzzy interpretative structural modeling (FISM) is used to reflect the relationships between these risks and reveal the failure mechanisms of PPP projects. In addition, based on matrix impact cross-reference multiplication applied to a classification (MICMAC) analysis, the risk is divided into four clusters, according to the driving and dependence power, to show the relationship level of the risk. Finally, the paper compares and discusses the research results with other studies and puts forward some suggestions on PPP risks. The FISM-MICMAC method adopted in this study considers the fuzzy of the PPP risk relationship and improves upon previous studies. In addition, the method of FISM-MICMAC can provide a new risk assessment tool for risk management strategies in the field of construction engineering and management.

Public-private partnerships in non-profit hospitals: Case study of China.

The gap between supply and demand for health care services is expanding rapidly in China. In order to resolve this problem, the government has implemented supply-side reforms in the health care sector by inviting private capital to increase supply quantity and improve quality. However, health care institutions have high complexity and particular needs, while non-profit hospitals have very strong public interests. This gives rise to complications in the implementation of public-private partnerships (PPPs) for health care services. In this paper, the authors have selected one case each from three different models of non-profit hospital PPP projects in the national PPP project database, operated by the Ministry of Finance, and compared how these projects were operated to identify the differences among them. A content analysis of the vital project documents is the primary analysis technique used for this comparison. Key issues investigated include reasons for model selection, requirements for private sectors and market competition level in different models, risk identification and sharing, design of payment mechanism, operation supervision, and performance appraisal of the project. Based on the comparison, some key lessons and recommendations are discussed to act as a useful reference for future non-profit hospital PPP projects in China.

Government Credit Risk Assessment of Non-profit PPP Projects in China based on the Model of IVHFSs-IFAHP

To reduce the financial pressure on local governments and improve operational efficiency, the Chinese government has introduced the Public-Private Partnership (PPP) model for the development of infrastructure. However, the government credit risk generated by PPP projects may damage private and public interests. Therefore, this study evaluates the government credit risks of non-profit PPP projects by using a systematic and rounded model that employs interval value hesitant fuzzy sets and intuitionistic fuzzy hierarchical analysis (IVHFS-IFAHP). This study employs the perspective of the private sector to establish risk index systems using the dimensions of Wuli-Shili-Renli (WSR) methodology. IFAHP is used to collect expert opinions for the comparison of the importance of the indexes and establish an intuitionistic fuzzy judgment matrix in order to calculate the weight of each index. IVHFSs are adopted to obtain the scores of the indexes coupled with the results acquired by IFAHP to produce comprehensive scores of the indexes. The feasibility and practicability of this method were verified empirically. This study provides an effective method for the private sector to evaluate the government credit risks of non-profit PPP projects and provides a reference for participation in PPP projects.

Problems and countermeasures of public-private partnership projects in China′s public hospitals

Public-private partnerships(PPP)can realize public goals of improving human health through the private investors′ financial resources and professional skills.The authors summarized the three models of PPP implementation in public hospitals.94 PPP projects with complete information from the project database operated by the Ministry of Finance were selected and analyzed.Problems identified include shortage of relevant organizational capacities and experience of government departments, low qualification requirements for potential private investors.Furthermore, these projects are faced with lack of competitiveness, insufficient awareness of the risks, lack of clear performance evaluation standards and difficulty in supervision, as well as poor attraction to private investors.Relevant countermeasures and suggestions have been put forward. Key words: Hospitals, public; Health resources; Public-private partnerships; Model

Enhanced Cooperation among Stakeholders in PPP Mega-Infrastructure Projects: A China Study

Despite the consensus that enhanced cooperation among stakeholders is critical to the successful delivery of public-private partnership (PPP) mega-infrastructure projects, there has been a limited utilization of the quantitative approach to explore the cooperation mechanism. Drawing on research and the actual practice of PPP projects in China, a quantitative mathematical model using evolutionary game theory is constructed to explore the internal cooperation mechanism. Numerical simulation is implemented to investigate the impact of the punitive mechanism and allocation mechanism on the enhanced cooperation. The simulation result indicates that reasonable benefit allocation and a strong punitive mechanism are crucial to enhanced cooperation. Action research supported by a case study in Dalian was conducted to verify the scientific practicalities of the simulation method. An enhanced cooperation framework was proposed. The role conversion of the government and the private sectors makes the enhanced cooperation feasible. This evolution model and cooperation framework can facilitate enhanced cooperation in PPP mega-infrastructure projects.

Charge pricing model for electric vehicle charging infrastructure public-private partnership projects in China: A system dynamics analysis

The design of charge price is essential to the financial viability of electric vehicle charging infrastructure public-private partnerships (EVCI-PPPs). This study proposes a system dynamics (SD) technique to develop a charge pricing model based on pro forma financial statements developed during the feasibility study period. Pricing parameters are first identified. A charge pricing model using the SD approach is then developed based on charge pricing parameters. This charge price not only ensures charge operators gain the anticipated minimum attractive return of rate, but also not exceed the government-regulated price. Subsequently, an ongoing EVCI-PPP project in Anqing is selected to verify the applicability and effectiveness of the model proposed in this study. Sensitivity analysis results indicate that operating costs, electricity price, and charge volume are the main determinants of feasible charge price. Several suggestions to improve charge operators' profits and reduce charge price, including increasing charge volume, negotiating with power companies for preferential electricity price, broadening profit channels, and improving operational capabilities, are put forward. This research framework can also be used as reference to study other infrastructure's pricing models.

Public-Private Partnerships in the Electric Vehicle Charging Infrastructure in China: An Illustrative Case Study

Effective supply of charging infrastructure is a necessary support for the development of electric vehicle and also an important strategic measure to promote energy consumption revolution and green development. The construction and operation of charging infrastructure in China is unfortunately not smooth, lagging behind the actual demand. Public-Private Partnerships (PPPs) may offer a promising way forward and accelerate the development of charging infrastructure by tapping the private sectors’ financial resources and professional skills. However, PPP has not been commonly adopted in this sector yet. This paper hence studied an illustrative case of Anqing Project in China to demonstrate how governments structure a PPP deal in the electric vehicle charging infrastructures. A content analysis was conducted on the important project documents to investigate key elements including the planning, construction, risk sharing, profit distribution, and supervision during the execution stage. Based on the illustration, some key lessons and recommendations were provided to offer a reference for future charging infrastructure PPP projects in China.

Social Risk Factors of Transportation PPP Projects in China: A Sustainable Development Perspective.

Public-private partnerships (PPPs) have become increasingly important in improving the sustainability of society in China, with transportation being the largest investment area. However, the Social Risk Factors (SRFs) of transportation PPPs in China, which serve as a useful tool for distinguishing strengths and weaknesses for effective social risk management (SRM), have not been clearly identified. A conceptual model including 3 risk dimensions and 15 SRFs was proposed to mitigate social risks and improve the social sustainability of transportation PPP projects. A questionnaire survey conducted to investigate stakeholders’ opinions on the proposed SRFs demonstrated that all the SRFs were important. The SRFs can be used to evaluate social risks from economic, environmental, and social dimensions. Confirmatory factor analysis (CFA) verified the classification of the SRFs and indicated that all the risk dimensions contributed to social risks. The social and environmental impacts on social sustainability may contribute more to the generation of social risks. Furthermore, the concept of people-first PPPs was proposed to reduce social risks from the perspective of different stakeholders, with the interactions among different stakeholders being prioritized. The identified SRFs and their relationships can improve our understanding of SRM in the delivery of social sustainability and improve social resilience.

Risk evaluation of electric vehicle charging infrastructure public-private partnership projects in China using fuzzy TOPSIS

Abstract With increasing worldwide attention on clean energy and sustainability of environment development, electric vehicle (EV) projects have been growing in number and scale all over the world. However, increasing demand-supply imbalance in charging infrastructure becomes the major obstacle of Chinese EV development. Governments are applying Public-Private Partnership (PPP) mode in this field to effectively make use of solid capital and advanced technological capability of private sector to improve charging performance and service. To ensure project success, risk evaluation, which has remained nebulous, has become a crucial step. This paper aims to explore risk factors through questionnaire survey and calculate the overall risk levels of EV charging infrastructure PPP projects with an integrated approach with Fuzzy Order Preference by Similarity to Ideal Solution (Fuzzy TOPSIS). Results of risk factors identification consisted of project/technical, political/legal, economic and social/environmental risk categories and four risk factors were selected for specific concern of charging infrastructure in China: inadequate PPP project experience, high battery cost, long charging period and power price rise. Overall risk levels of three alternative projects were evaluated and ranked with proposed approach whose feasibility and effectiveness were verified through a comparative analysis and a sensitivity analysis. Moreover, awareness of existing risks, suggestions were provided for private sectors of EV charging infrastructure PPP project. The detailed implications and limitations were presented in the suggestions and the conclusions.

Formation of optimal private involvement in urban rail public-private partnership projects in China

Subnational governments in China are suffering from urgent urban development demands and severe fiscal pressure, public-private partnerships (PPPs) are hence strongly promoted to attract private investors to participate in the development and operation of urban rail projects. However, there is no formal assessment to determine the degree of private involvement in a PPP project. This question is more critical in the sector of urban rail, in which the huge investment cannot rely on the private sector alone. This study hence aimed to develop a five-stage systematic procedural framework to determine the optimal private involvement in an urban rail PPP project in China. The findings add to the current knowledge base by summarising an appropriate and systematic procedural framework for the allocation of involvement in a PPP project. They are also beneficial for the industry practitioners as a management framework to determine the appropriateness of private involvement.

Formation of optimal private involvement in urban rail public-private partnership projects in China

Subnational governments in China are suffering from urgent urban development demands and severe fiscal pressure, public-private partnerships (PPPs) are hence strongly promoted to attract private investors to participate in the development and operation of urban rail projects. However, there is no formal assessment to determine the degree of private involvement in a PPP project. This question is more critical in the sector of urban rail, in which the huge investment cannot rely on the private sector alone. This study hence aimed to develop a five-stage systematic procedural framework to determine the optimal private involvement in an urban rail PPP project in China. The findings add to the current knowledge base by summarising an appropriate and systematic procedural framework for the allocation of involvement in a PPP project. They are also beneficial for the industry practitioners as a management framework to determine the appropriateness of private involvement.

Identifying Risk Response Measures for PPP Projects in China

Public–Private Partnership (PPP) projects have received increasing attention over the last decade. Although numerous studies have been conducted in this area, only a few focused on exploring an objective and reliable risk response model for PPP projects. In this study, practical risk response measures for 16 risk factors of PPP projects were compiled and documented through a comprehensive literature review. The findings can provide good references for both government departments and private companies to cope with potential risks during implementing PPP in China.

Risk assessment in straw-based power generation public-private partnership projects in China: A fuzzy synthetic evaluation analysis

With the increasing requirement on energy saving, emission reduction and environmental protection in China, the straw-based power generation is developing rapidly, which can not only provide clean energy, but also address the serious environmental problems caused by farmers’ burning straw directly. Currently, the government is gradually applying Public-Private-Partnership model to this field making use of private sectors’ capital and technological advantages. To assess the risks in public-private partnership straw-based power generation projects in China, 44 risk factors were identified and 19 critical risks factors (CRFs) were selected and classified into 4 groups (CRGs) based on a questionnaire survey in this paper. Then, the likelihood of occurrence (LO), magnitude of impact (MI), the integrated risk level (IRL) of each CRF, CRG and the overall risk were calculated through the fuzzy synthetic evaluation method. The CRF “government invention” was the most critical risk factor and the CRG “project participant risk” was the most critical risk factor group. Overall, the final fuzzy synthesis result indicated that the IRL of the public-private partnership straw-based power generation projects in China was high. Finally, some recommendations were given for each CRF. The evaluation index system, the multi-criteria fuzzy synthetic evaluation framework, the obtained conclusions and the risk response measures in this paper can help policy makers and project decision makers make appropriate decisions and allocate the limited resources to the risks worthy more attention. Simultaneously, this paper can provide a reference for the private sector to avoid too risky project and at the same time facilitate the public sector to take effective measures reducing project risks so as to attract more high-quality private capital. In addition, the risk assessment in public-private partnership straw-based power generation projects has not been discussed and paid enough attention yet. Thus, this study expands the knowledge and contributes to the literature.

Factors Influencing the Private Involvement in Urban Rail Public-Private Partnership Projects in China

Private investors have been encouraged to participate in the development and operation of urban rail projects in China through Public-Private Partnerships (PPPs), given the fact that subnational governments are suffering from urgent development demands and severe fiscal pressure. However, there is no formal assessment to determine the private involvement in a PPP project. This problem is particularly critical in the sector of urban rail, in which the huge investment cannot rely on the private sector alone. This study hence aimed to uncover and identify the influencing factors. Multiple research methods, including content analysis, case study and focus group discussion were adopted to achieve the research purpose. Seven types of influencing factors were identified, including project financial model, government fiscal commitment, risk allocation, public accountability, efficiency considerations, policy and regulations, and organisational marketing strategies. The findings add to the current knowledge base by uncovering the drivers behind private involvement in a PPP project. They are also beneficial for industry practitioners as a basis/checklist to determine the private involvement.

Risk assessment for public–private partnership projects: using a fuzzy analytic hierarchical process method and expert opinion in China

Public–private partnerships (PPP) have been widely used in China to procure public facilities and services. Complicated problems in PPP projects in China arise because of a variety of risk factors. A proper risk assessment model is needed to identify risks and provide risk response strategies for future Chinese PPP projects. The fuzzy analytic hierarchy process (F-AHP) method provides the ability to solve complex risk assessment of PPP projects. Current risk assessment models are limited to PPP projects in specific countries and do not consider unique risks in China, especially political, economic, social, and legal risks. This paper designed a risk evaluation index system for PPP projects based on the Delphi expert investigation method, and then established an optimized risk evaluation model for PPP projects in China using the F-AHP method. The risks identified are confirmed by interviewing experts from Chinese local government departments, private enterprise, third-party intermediary consulting and regulatory agencies, and academic organizations. The results show that the risks that ranked among the top ten are closely related to China’s political and economic policies and relationships among stakeholders. It can be concluded that government authorities play a critical role in providing a favorable political, social, and economic environment and an effective institutional framework for PPP projects. Furthermore, it is also important to deal with relationships among stakeholders based on the public–private ‘win–win’ principle. This study provides risk response strategies, addressing key issues from eight aspects: an impeccable legal and regulatory framework; a central coordinating and regulating PPP authority; supportive governmental authorities; institutional capacity-building; favorable economic conditions and viability; community, partner, and moral accountability; clear division of responsibilities through contracts; and effective advisory management. These effective measures may be useful in reducing the adverse effects of risk for PPP projects in China.

Selection of PPP Projects in China Based on Government Guarantees and Fiscal Risk Control

Public-Private Partnership (PPP) is an effective investment channel for government to provide public services. PPPs have the advantage of transferring some project risk to the private sector. They also imply that the public sector should establish appropriate laws and regulations to enable government departments to effectively avoid the emergence of new fiscal risks, which may affect the sustainability of fiscal budgets. This paper expounds the fiscal risks implied by PPP projects in China and the status of government guarantees in various forms of PPP projects; chance-constrained goal-programming (CCGP) is used to simulate government project selection under budget and risk control constraints. The analysis takes fiscal space, the expected costs and benefits of government guarantees, and the possibility of excess government subsidies into consideration. Constrained by fiscal risk minimization and budget limitations, PPP projects with government guarantees can maximize social-economic net present value and simultaneously optimize welfare. The paper also puts forward corresponding policy recommendations based on the research findings.

Spatio-temporal dynamics of public private partnership projects in China

Public Private Partnership (PPP) has been widely applied in developing infrastructures around the world. In this research, a large database of PPP projects in China was firstly built to explore the spatio-temporal evolution in terms of regional differentiation, sectors, investors and contract types. It was found that China's PPP projects have undergone four stages with the characteristics of fluctuations along with time series, spatial differentiation and paradox of application. The mechanism behind these changes mainly include the momentum of economic development and impact of national policies, local settings, especially the local governments' motivation, preference, competency and reliability, as well as the feasibility and management of PPP projects. This paper tries to make its contribution in providing Chinese cases for international comparison, while helping Chinese national and local governments make customized policies, as well as laying foundation for further in-depth empirical and theoretical PPP research.

Legal Risk Impact in Public Private Partnerships (PPPs): The Case of the Chinese Water Sector

China is currently experiencing a rising demand for water, combined with limited funding availability for water project procurement. Consequently, local Chinese governments have sought procurement solutions by experimenting with public private partnerships (PPPs). However, the legal risk in PPPs, particularly in the water sector, remains high. Legal risk refers to risk arising from the legal and regulatory systems surrounding PPPs. Past research have identified legal risk in PPP projects in China as critical, however the stages at which they are significant have not been studied. This paper examines the legal risk associated with PPPs in the water sector in China and measures the degree of risk across three key stages; 1) Procurement, 2) Construction and 3) Operation. The interrelationship between legal risk at these three stages is also investigated. The significance of the risk was measured by determining the probability and severity of the risk. Correlation analysis was used to investigate the relationship between legal risks across the three stages. Our findings are that legal risk is present at all three stages, at close to moderate levels, with risk significance greatest at the operational stage. Moreover, while no correlation was identified for legal risk at the operational stage with those of earlier stages, it was found that legal issues arising during the procurement stage significantly exacerbated any further legal issues that emerged during the construction stage of water projects. The findings from this study will be significant in providing practitioners with the information to manage this risk at different stages of PPP projects.