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

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.

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