International Journal of Frontiers in Engineering Technology, 2023, 5(4); doi: 10.25236/IJFET.2023.050401.
Hao Wang, Mohamad Bin Ayob
Faculty of Engineering and Technology Infrastructure, Infrastructure University Kuala Lumpur, De Centrum City, Kajang, Selangor Darul Ehsan, 43000, Malaysia
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.
Infrastructure construction; PP model; Project procurement; Project Cost control; Cost management
Hao Wang, Mohamad Bin Ayob. Survey and Suggestions on the Current Situation of PPP Model in Henan, China. International Journal of Frontiers in Engineering Technology (2023), Vol. 5, Issue 4: 1-5. https://doi.org/10.25236/IJFET.2023.050401.
[1] National Bureau of Statistics of China. Report on 30 years of reform and opening up No. 2: The great historical turn from closed and semi-closed to all-round opening. Available from: http://www.stats.gov.cn/ztjc/ztfx/jnggkf30n/200810/t20081028_65688.html [Accessed 15th Dec. 2021].
[2] Liu Xinrong. Research on local government financing in China's urban infrastructure construction and countermeasures. Master’s Thesis, Minzu University of China, Beijing; 2016.
[3] Meng Wei, Wu Yue. Has the PPP model eased the fiscal pressure on local governments - an empirical study based on data from Chinese prefecture-level cities. Journal of Guizhou University of Finance and Economics. 2019; 6(01):63-72.
[4] Wu Hao. Exploring the whole process cost management of engineering projects under PPP mode. Urban Architecture Space. 2021; 28(01):249-250.
[5] Zhang Qun. Cost management of construction economy under market economy. Zhejiang Construction. 2017; 34(03):56-57+63.
[6] Yin Lin. Exploring the evaluation of risk factors of whole process engineering cost consulting for PPP projects. Heilongjiang Science. 2020; 11(18):149-151.
[7] China Government Procurement Network. Zhou Wei, Jian Mengwei: 2016 Government Work Report The warm wind of PPP policy blowing out. Available from: http: // www. ccgp. gov. cn/ ppp/ zcjd/ 201603/t20160322_6602712.htm [Accessed 27th Dec. 2021].
[8] Wang Runquan. The evolution of PPP model in China. Agricultural Development and Finance. 2018; 12 (12):42-45.
[9] Liu Min, Wang Hongbin, Cheng Wen. Reflections on the Performance Evaluation of Public Debt Projects. China Collective Economy. 2020; 36(32):64-66.
[10] China Public-Private Partnership Center. Important signals to boost confidence! The central government clearly supports infrastructure construction with PPP mode. Available from: https://www.cpppc.org/zgcjb/1001930.jhtml [Accessed 23rd Aug. 2022].
[11] Chen Li. Analysis of the Current Situation of China's Government Procurement System and Countermeasures Research. Master's Thesis, Tianjin University of Finance and Economics, Tianjin; 2018.
[12] Ma Haitao, Yang Jianmin, An Xiumei, etc. Blue Book of PPP in China - China’s PPP Industry Development Report (2022). Beijing: social sciences academic press (CHINA); 2022.
[13] Lei Yiming. Analysis of the impact of local government credit level on the pricing of PPP products. Modern Business 2021; 36(04), 98-100.