Author(s)

Can Zhang

Corresponding Author

Can Zhang

Abstract

PPP is a partnership established by the government, social capital and it based on the principles of risk sharing and benefit sharing. Based on 30 typical case sets of PPP projects, this paper uses qualitative comparative analysis to explore the successful or failure influencing factors of PPP. There are seven paths for PPP success and path one and path two are typical paths. The feasibility gap subsidy makes up for the defects of government payment and user payment, and integrates the advantages of both, forming a diffusive and effective return mechanism. Based on complementary advantages, the cooperation between state-owned enterprises and foreign enterprises is conducive to the success of PPP projects. There are six paths to PPP project failure. A reasonable risk sharing framework is the basis to avoid PPP failure. Policy risk should be undertaken by the government, operational risk should be undertaken by the project company, and citizen opposition and uncertainty risk should be jointly undertaken by the project company and the government, thus forming a dynamic risk tracking mechanism and sustainable return mechanism.

Keywords

Path analysis of PPP project; Risk sharing and return mechanism; QCA method