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Development of Public Private Partnership (PPP) Projects in the Chinese Water Sector

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  • Seungho Lee

Abstract

This study analyzes the transformation of urban water services in China since the late 1990s focusing on the interaction between the government and private players in the form of public private partnership projects. A lack of fund, outdated technologies and management skills, and underpriced water tariffs had deteriorated urban water services in China. Chinese authorities decided to adopt private sector participation in the urban water sector. The institutional reform has attracted private players to contribute to public private partnership projects. Water multinationals and Chinese companies have actively participated in such new development. But a myriad of risks are identified in the Chinese water market, including socio-political, institutional and regulatory, revenue and foreign exchange, and project construction and operation risks. The key to success of this policy shift depends on the extent to which Chinese authorities can provide an institutional platform for improvement of urban water services with the participation of private players. Also the changing role of the government from a service provider to a regulator is necessary. Copyright Springer Science+Business Media B.V. 2010

Suggested Citation

  • Seungho Lee, 2010. "Development of Public Private Partnership (PPP) Projects in the Chinese Water Sector," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(9), pages 1925-1945, July.
    • Handle: RePEc:spr:waterr:v:24:y:2010:i:9:p:1925-1945
    DOI: 10.1007/s11269-009-9531-1
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    References listed on IDEAS

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    1. Dajun Shen, 2006. "Access to Water and Sanitation in China: History, Current Situation and Challenges," Human Development Occasional Papers (1992-2007) HDOCPA-2006-47, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
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    Cited by:

    1. Jian Chang & Wanhua Li & Yaodong Zhou & Peng Zhang & Hengxin Zhang, 2022. "Impact of Public Service Quality on the Efficiency of the Water Industry: Evidence from 147 Cities in China," Sustainability, MDPI, vol. 14(22), pages 1-17, November.
    2. Meytang Cédric & Ongo Nkoa Bruno Emmanuel, 2024. "Infrastructure development in sub-Saharan African countries: does insurance matter?," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 49(4), pages 747-778, October.
    3. Antonio Estache & Caroline Philippe, 2012. "The Impact of Private Participation in Infrastructure in Developing Countries: Taking Stock of about 20 Years of Experience," Working Papers ECARES ECARES 2012-043, ULB -- Universite Libre de Bruxelles.
    4. Xiao Liang & Yuqing Liang & Chong Chen & Meine Pieter van Dijk, 2020. "Implementing Water Policies in China: A Policy Cycle Analysis of the Sponge City Program Using Two Case Studies," Sustainability, MDPI, vol. 12(13), pages 1-11, June.
    5. Amelia Clarke & Andrew Crane, 2018. "Cross-Sector Partnerships for Systemic Change: Systematized Literature Review and Agenda for Further Research," Journal of Business Ethics, Springer, vol. 150(2), pages 303-313, June.
    6. La Ode Mustafa Muchtar & Nunung Prajarto & Subejo, 2012. "Public-private partnerships in implementation of Gerbangmastra program," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 4(1), pages 37-51, April.
    7. Taeil Park & Byungil Kim & Hyoungkwan Kim, 2012. "Impact of Deterioration and Negotiation on Sewer System O&M Contracts from the Real Option Perspective," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(10), pages 2973-2989, August.
    8. Liu Antung & Zhang Junjie, 2013. "Fiscal Decentralization and Environmental Infrastructure in China," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 13(2), pages 733-759, July.
    9. Stelios Gialis & Athanasios Loukas & Chrysi Laspidou, 2011. "Theoretical Perspectives and Empirical Facts on Water Sector Privatization: The Greek Case Against European and Global Trends," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(6), pages 1699-1719, April.
    10. Sladjana Benkovic & Nemanja Milanovic & Milos Milosavljevic, 2017. "A Framework for the Evaluation of the Feasibility of Public – Private Partnership in Local Government in Serbia," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 14(4), pages 7-23.

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