Critical Success Factors for PPPs in Infrastructure Developments: Chinese Perspective
Publication: Journal of Construction Engineering and Management
Volume 136, Issue 5
Abstract
With the rapid growth of the Chinese economy, the desperate demand for infrastructure developments has created bottlenecks in the country’s sustainable development. Infrastructure investment could not be funded completely by the government alone. Taking Beijing as an example, there will be about 2,400 infrastructure projects to be developed during 2006–2010 with a total investment of over RMB 470 billion, which may impose budgetary pressure on the government. As a result, public-private partnership (PPP) could be considered as a favorable option to help provide these rapidly demanded public works and services. In order to investigate the potential for adopting PPPs in the People’s Republic of China, this paper aims to explore the critical success factors (CSFs) necessary to conduct PPP projects. The views from Chinese experts were collected via an empirical questionnaire survey. The respondents were invited to rate a total of 18 CSFs that contribute to the success of PPP projects as gleaned from the contemporary literature. The results of this survey were analyzed by the factor analysis technique. The findings showed that the 18 CSFs could be grouped into five underlying factors including: Factor 1—stable macroeconomic environment; Factor 2—shared responsibility between public and private sectors; Factor 3—transparent and efficient procurement process; Factor 4—stable political and social environment; and Factor 5—judicious government control.
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Acknowledgments
The work described in this paper was fully supported by a grant from the Research Grants Council of the Hong Kong Special Administrative Region, China (RGC Project No. UNSPECIFIEDPolyU 5114/05E). Sincere thanks go to Dr. Bing Li and Professor Akintola Akintoye for permitting the research team to adapt their survey questionnaire template. Special gratitude is also extended to those industrial practitioners from both China and Hong Kong, who have kindly participated in the questionnaire survey reported in this paper from October 2007 to December 2007. This paper forms part of the research project entitled “Developing a Better Practice Framework for Public Private Partnerships (PPP) in Hong Kong,” from which other deliverables have been produced with different objectives/scope but sharing common background and methodology.
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Information
Published In
Journal of Construction Engineering and Management
Volume 136 • Issue 5 • May 2010
Pages: 484 - 494
Copyright
© 2010 ASCE.
History
Received: Jun 9, 2008
Accepted: Sep 16, 2009
Published online: Apr 15, 2010
Published in print: May 2010
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