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PPP project procurement model selection in China: does it matter?

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  • Wang Pu
  • Fei Xu
  • Ruoxun Chen
  • Rui Cunha Marques

Abstract

Procurement models play a key role in determining the success of a public–private–partnership (PPP) project because they can help the government select the best bidder. Yet, few studies have systematically examined the selection of different procurement models. A content analysis is performed to discuss the institutional and legal framework along with the features of different procurement models in China. A multinomial logistic regression model is then applied to empirically investigate the relationship between the selection of different procurement models and the internal characteristics of the projects, including the investment, duration, operation mode, sector and region. Besides, a questionnaire survey to Chinese officials participating in PPP project procurement is conducted to identify the critical factors affecting the selection preferences. The regression analysis shows that the PPP project procurement model selection in China varies significantly with the internal characteristics of the projects. Moreover, the three most important factors identified are the laws and regulations, internal characteristics of the projects and advice from consultant agencies. These results indicate that the PPP project procurement model selection in China does matter. Helpful policy suggestions for the governments of China and other countries are also provided.

Suggested Citation

  • Wang Pu & Fei Xu & Ruoxun Chen & Rui Cunha Marques, 2020. "PPP project procurement model selection in China: does it matter?," Construction Management and Economics, Taylor & Francis Journals, vol. 38(2), pages 126-139, February.
    • Handle: RePEc:taf:conmgt:v:38:y:2020:i:2:p:126-139
    DOI: 10.1080/01446193.2019.1596291
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    Cited by:

    1. Tavana, Madjid & Khalili Nasr, Arash & Mina, Hassan & Michnik, Jerzy, 2022. "A private sustainable partner selection model for green public-private partnerships and regional economic development," Socio-Economic Planning Sciences, Elsevier, vol. 83(C).
    2. Takano, Guillermo, 2021. "The competitive performance of public-private partnership markets. The case of unsolicited proposals in Peru," Utilities Policy, Elsevier, vol. 72(C).
    3. Majeed, Muhammad Ansar & Yan, Chao & Zhong, Huijie, 2022. "Do firms manipulate earnings after winning public-private partnership bids? Evidence from China," Emerging Markets Review, Elsevier, vol. 51(PB).
    4. Wang, Nannan & Gong, Zheng & Liu, Yunfei & Thomson, Craig, 2020. "The influence of governance on the implementation of Public-Private Partnerships in the United Kingdom and China: A systematic comparison," Utilities Policy, Elsevier, vol. 64(C).
    5. Zhao, Jianfeng & Greenwood, David & Thurairajah, Niraj & Liu, Henry J. & Haigh, Richard, 2022. "Value for money in transport infrastructure investment: An enhanced model for better procurement decisions," Transport Policy, Elsevier, vol. 118(C), pages 68-78.
    6. Lima, Sónia & Brochado, Ana & Marques, Rui Cunha, 2021. "Public-private partnerships in the water sector: A review," Utilities Policy, Elsevier, vol. 69(C).

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