Study on PPP Contract-Models for Urban Rail Transit (URT) Projects in China

Hua, Guanguan

doi:10.1007/978-3-642-23023-3_78

Cited by 3 publications

(3 citation statements)

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“…However, operation of an urban rail system has bright prospects for commercialisation, from which expected level of profits can be gained (Chen and Fang, 2011). Despite the generally unprofitable business performance, a few subway operators achieve satisfactory outcomes through operating and managing urban rail networks, such as the Hong Kong Mass Transit Railway (MTR) (Hua, 2011).…”

Section: Special Characteristics Of Urban Rail Developmentmentioning

confidence: 99%

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Can the pilot public-private partnerships project be applied in future urban rail development?

Liu

Wilkinson

2013

Built Environment Project and Asset Management

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Purpose – This purpose of this paper is to evaluate the experiences of public-private partnerships (PPPs) in China's urban rail development, investigates the critical factors impacting on the project viability and derives lessons for future urban rail PPP projects in China and elsewhere. Design/methodology/approach – A case study of the Beijing Metro Line 4 project was adopted as the main research method with semi-structured interviews with senior practitioners and experienced academics as the primary data collection instrument. Qualitative data were collected and subjected to content analysis. Findings – The case study provides six critical factors which are required to facilitate PPP urban rail development: streamlined approval process; robust tendering; strong leadership within the public procuring authority; effective organisational structure and the private sector innovation; commensurate charging approach and government subsidising scheme; and appropriate risk allocation. The research shows that the potential to directly re-apply the Beijing Metro Line 4 model to future urban rail development is limited, but lessons for future urban rail PPPs can still be drawn from the study. Practical implications – The paper serves as an illustration to public procuring authorities and potential private investors on how to structure and manage urban rail PPPs. Originality/value – The research presents an original investigation of China’s first urban rail PPP, the Beijing Metro Line 4 project and assesses the applicability of the Beijing model to future PPP projects in urban rail development.

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Section: Special Characteristics Of Urban Rail Developmentmentioning

confidence: 99%

“…The line was the primary south-to-north traffic artery for the Beijing metro system. With total investment of USD 2.4 billion, this project was Mainland China's first PPP project for the development and operation of urban rail transit systems (Hua, 2011).…”

Section: Bepam 32mentioning

confidence: 99%

Can the pilot public-private partnerships project be applied in future urban rail development?

Liu

Wilkinson

2013

Built Environment Project and Asset Management

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“…But URT PPP projects are not more attractive for the private sector because of prominent operation risks (OR). This results from the contradiction between high construction costs and low ticket income (Siemiatycki and Jonathan, 2012), making it difficult to achieve reasonable returns in public concession duration (Hua, 2011). In order to increase profitability of URT PPP, and thus draw in private capital, the government often compensates losses to guarantee private sector absolute returns (Carpintero and Petersen, 2014).…”

Section: Introductionmentioning

confidence: 99%

Operational risk allocation in urban rail transit public–private partnership projects

Pan

Zhang

Jiang

et al. 2022

Front. Environ. Sci.

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Operation risk (OR) has affected sustainable development of urban rail transit (URT) public–private partnership (PPP) projects in China. Balanced distribution of operational risks among stakeholders (the public, government, and private companies) involved in URT PPP projects can maximize overall profit. Quantitative analysis of operational risk allocation of urban rail transit PPP project is the key to achieve balance. Few existing studies have quantitatively analyzed operation risk allocation (ORA) in URT PPP project. The objective of this research is to construct a quantitative risk allocation model among three participants by using cooperative game theory. The risk allocation model was modified based on the consideration of four factors affecting the allocation of operational risks: controllability, risk loss, affordability, and handling cost. A case was used as an empirical example, and possible problems were illustrated. The result shows it is necessary and feasible to let the public bear part of the operational risk of the project by raising ticket prices. The results reveal that the public will play an important role in balancing risk allocation. This study shows that an ORA model can suggest how to make the risk allocation process more reasonable, fair, and stable. Meanwhile, the quantitative approach proposed can also be used by stakeholders in achieving fairness and stability of the partnership.

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