| Title |
Key Risks and Success Factors on the China's Public-Private Partnerships Water Project |
| Authors |
Choi, Jae-ho ; Lee, Seungho |
| Keywords |
China ; Water Industry ; PPP ; BOT(Build-Operate-Transfer) ; Risk Factor ; Success Factor |
| Abstract |
In China, the enhancement of water services has become the most crucial issue confronted with the rapid urbanization and industrialization process. A huge financial gap to meet the demand for water infrastructure and need for adopting advanced operation technology precipitated the rapid growth of PPP over the last 10 years. Diverse schemes of PPP such as TOT, Divestiture, and Management Contract and Lease have been practiced. Local governments and private investors/operator have adjusted their objectives and strategies to avoid potential pitfalls behind BOT projects in China. However, current academic research outcomes do not properly reflect important issues of BOT projects or related case studies in China. This limitation has brought in the lack of assessment of important risks and success factors required for the improvement of the body of risk management. In this regard, this study uses the market analysis method to identify major schemes of PPP water projects and conducts case studies on five PPP projects to identify key risk and success factors in association with each different scheme. It is expected that the risk and success factors identified from the cases will be used as reference to Korean companies which plan to enter the Chinese water market. |