Determining appropriate government guarantees for concession contract: lessons learned from 10 PPP projects in China

International Journal of Strategic Property Management

Yelin Xu¹  Shaohua Jiang²  John F. Y. Yeung³ 

[1] Department of Building and Real Estate, Zhejiang Sci-tech University, Hangzhou, China;Department of Engineering Management, Dalian University of Technology, Dalian, China;Division of Business, College of International Education, School of Continuing Education, The Hong Kong Baptist University, China;

关键词: Government guarantee;    Public Private Partnership;    Case study;    Risk sharing;   

DOI  :  10.3846/1648715X.2014.971088

来源: DOAJ

【 摘 要 】

Governments worldwide are keen to encourage PPP schemes, however PPP is not a foolproof business. Many local governments and private investors have suffered severe or trying experiences. In this research, 10 case studies were conducted to identify the obstacles and difficulties for successful implementation of PPP projects from the perspective of government guarantees. These PPP projects include two water supply plants, two sewage treatment plants, two power supply plants, two highway projects, and two bridge projects. The findings obtained indicate that the local governments are familiar with “the type of guarantees” to provide to the private investor but they are unsure of the “amount” that should be given. Many PPP projects have therefore been heavily criticized for over benefiting the private investors as the government provides them with too many guarantees. The inappropriate guarantees offered by the government are regarded as one of the root causes of PPP projects’ failure. The lessons learned are valuable for determining appropriate government guarantees for future PPP projects and broadening the opportunities for infrastructure development with PPP procurement model.

【 授权许可】

Unknown