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

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

Construction Management and Economics · 2019 · 33 citations · 33 references

Concepts

TL;DR

Procurement models are critical for PPP project success, yet systematic studies on model selection are scarce. This study analyzes China’s institutional and legal framework and the features of different procurement models. Using multinomial logistic regression and a questionnaire survey of Chinese PPP officials, the authors examine how project characteristics, laws, and consultant advice influence model choice. Results show that procurement model selection varies with project characteristics, and the most influential factors are regulations, internal project features, and consultant advice, confirming that model choice matters.

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.

References

33