Analysis on application of PPP method in China: Problem review and case study
International Conference on Construction and Real Estate Management, 2007-8-21 ~ 2007-8-22, pp 307-312, 2007
Since 1980's Public Private Partnership (PPP) method was firstly recommended into China, it has been applied in large scale infrastructure and public sectors such as highways, tunnels, bridges, underground and health services. While there have been many successful PPP cases, more failing cases existed. These cases should be learned to better operate PPP method in China. The paper focused on current status of application of PPP method in China with nearly 120 cases in China about PPP method being collected. And situation of PPP method application was shown by these cases. The development course and some statistical analysis were introduced in the first place. The paper considered that the development course can be divided three stages, and some characteristic of PPP method such as area distribution, industry distribution, sub pattern forms and financing structure were shown in the paper. Then a 4P (Public Private Partnership Project) method was established to analyze problems (Government Regulation, Project Financing, Legislative Problem and Legal Issue) existing in practical application on the basis of the problems cited above. 4P model profoundly explained why and how problems appeared by the means of typical case studying. And the model's nuclear concept is that public partner, private partner and government get together for long-term, sustainable operation of PPP projects. Lastly, some advices about application of PPP method were given.
public private partnership; ppp; government regulation; project financing; legislative problem; legal issue