Share:


Lifecycle performance measurement of public-private partnerships: a case study in China’s water sector

    Fengyu Bao Affiliation
    ; Igor Martek Affiliation
    ; Chuan Chen Affiliation
    ; Albert P. C. Chan Affiliation
    ; Yao Yu Affiliation

Abstract

Numerous public-private partnership (PPP) infrastructure projects have been operating in China after nearly 30 years of development. Surprisingly, few lessons and experiences have been drawn from these existing cases, thereby creating an urgent demand for a comprehensive evaluation of their performance. Thus, this paper presents a timely contribution to the assessment of a representative PPP project in China’s water sector, the Chengdu No. 6 Water Plant B Project, from a lifecycle perspective. Through a triangulation method, the project is generally deemed a success providing instructive lessons on the future evolutionary development of PPPs in China despite several imperfections caused by particular historical factors. Moreover, this paper advances the performance measurement of PPPs offering empirical insights to promote the efficacy of conceptual performance measurement frameworks. The outcomes of this research are especially valuable to the current Chinese PPP community where huge opportunities and challenges simultaneously exist.

Keyword : public-private partnership, water sector, lifecycle performance measurement, China, case study

How to Cite
Bao, F., Martek, I., Chen, C., Chan, A. P. C., & Yu, Y. (2018). Lifecycle performance measurement of public-private partnerships: a case study in China’s water sector. International Journal of Strategic Property Management, 22(6), 516-531. https://doi.org/10.3846/ijspm.2018.6048
Published in Issue
Nov 12, 2018
Abstract Views
1292
PDF Downloads
801
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

ADB. (2006). Guidelines for preparing performance evaluation reports for public sector operations. Retrieved from https://www.adb.org/sites/default/files/institutional-document/32516/guidelines-evaluation-public-sector.pdf

ADB. (2008). Public–private partnerships handbook. Philippines: ADB.

Ansar, A., Flyvbjerg, B., Budzier, A., & Lunn, D. (2016). Does infrastructure investment lead to economic growth or economic fragility? Evidence from China. Oxford Review of Economic Policy, 32(3), 360-390. https://doi.org/10.1093/oxrep/grw022

Atkinson, R. (1999). Project management: cost, time and quality, two best guesses and a phenomenon, its time to accept other success criteria. International Journal of Project Management, 17(6), 337-342. https://doi.org/10.1016/S0263-7863(98)00069-6

Bao, F., Chan, A. P. C., Chen, C., & Darko, A. (2018). Review of public-private partnership literature from a project life cycle perspective. Journal of Infrastructure Systems, 24(3). https://doi.org/10.1061/(ASCE)IS.1943-555X.0000424

Bassioni, H. A., Price, A. D. F., & Hassan, T. M. (2004). Performance measurement in construction. Journal of Management in Engineering, 20(2), 42-50. https://doi.org/10.1061/(ASCE)0742-597X(2004)20:2(42)

Bititci, U. S., Carrie, A. S., & McDevitt, L. (1997). Integrated performance measurement systems: a development guide. International Journal of Operations & Production Management, 17(5), 522-534. https://doi.org/10.1108/01443579710167230

Central People’s Government of the People’s Republic of China. (2017). Circular on further regulating the behavior of local government borrowing for financing. Retrieved from http://www.gov.cn/xinwen/2017-05/03/content_5190675.htm

Chan, A. P. C., & Chan, A. P. L. (2004). Key performance indicators for measuring construction success. Benchmarking: An International Journal, 11(2), 203-221. https://doi.org/10.1108/14635770410532624

Chan, A. P. C., Darko, A., & Ameyaw, E. E. (2017). Strategies for promoting green building technologies adoption in the construction industry – an international study. Sustainability, 9(6), 969. https://doi.org/10.3390/su9060969

Chen, C. (2009). Can the pilot BOT Project provide a template for future projects? A case study of the Chengdu No. 6 Water Plant B Project. International Journal of Project Management, 27(6), 573-583. https://doi.org/10.1016/j.ijproman.2008.10.006

Chen, C., & Doloi, H. (2008). BOT application in China: driving and impeding factors. International Journal of Project Management, 26(4), 388-398. https://doi.org/10.1016/j.ijproman.2007.07.002

Cheng, Z., Ke, Y., Lin, J., Yang, Z., & Cai, J. (2016). Spatio-temporal dynamics of public private partnership projects in China. International Journal of Project Management, 34(7), 1242-1251. https://doi.org/10.1016/j.ijproman.2016.05.006

Cheung, E., & Chan, A. P. (2009). Is BOT the best financing model to procure infrastructure projects? A case study of the Hong Kong-Zhuhai-Macau Bridge. Journal of Property Investment & Finance, 27(3), 290-302. https://doi.org/10.1108/14635780910951984

Chou, J.-S., & Lin, C. (2012). Predicting disputes in public-private partnership projects: classification and ensemble models. Journal of Computing in Civil Engineering, 27(1), 51-60. https://doi.org/10.1061/(ASCE)CP.1943-5487.0000197

Chou, J. S., Hsu, S. C., Lin, C. W., & Chang, Y. C. (2016). Classifying influential for project information to discover rule sets for project disputes and possible resolutions. International Journal of Project Management, 34(8), 1706-1716.

Cruz, C. O., Marques, R. C., & Pereira, I. (2015). Alternative contractual arrangements for urban light rail systems: lessons from two case studies. Journal of Construction Engineering and Management, 141(3). https://doi.org/10.1061/(ASCE)CO.1943-7862.0000942

Dayue Consulting. (2014). The world bank PPP unit visit Dayue. Retrieved from http://www.dayue.com/templates/T_Second/index.aspx?contentid=2302&nodeid=50&page=ContentPage

EIB. (2012). The guide to guidance: how to prepare, procure and deliver PPP projects. Retrieved from http://www.eib. org/attachments/epec/epec_the_guide_to_guidance_en.pdf?f =search&media=search

El-Gohary, N. M., Osman, H., & El-Diraby, T. E. (2006). Stakeholder management for public private partnerships. International Journal of Project Management, 24(7), 595-604. https://doi.org/10.1016/j.ijproman.2006.07.009

Gerring, J. (2007). Is there a (viable) crucial-case method? Comparative Political Studies, 40(3), 231-253. https://doi.org/10.1177/0010414006290784

Hall, D., Lobina, E., & Terhorst, P. (2013). Re-municipalisation in the early twenty-first century: water in France and energy in Germany. International Review of Applied Economics, 27(2), 1-6. https://doi.org/10.1080/02692171.2012.754844

Ham, H. V., & Koppenjan, J. (2001). Building public-private partnerships: assessing and managing risks in port development. Public Management Review, 3(4), 593-616. https://doi.org/10.1080/14616670110070622

Han, Y. (2006). Research on the BOT financing mode of Chengdu No. 6 water plant B project. University of Electronic Science and Technology of China.

Henjewele, C., Sun, M., & Fewings, P. (2014). Comparative performance of healthcare and transport PFI projects: empirical study on the influence of key factors. International Journal of Project Management, 32(1), 77-87. https://doi.org/10.1016/j.ijproman.2013.01.008

HM Treasury. (2004). Regularity, propriety and value for money. London, UK: HM Treasury.

HM Treasury. (2008). Infrastructure procurement: delivering longterm value. UK Government.

HM Treasury. (2013a). Making savings in operational PFI contracts. London, UK: HM Treasury.

HM Treasury. (2013b). PFI/PPP finance guidance. Retrieved from https://www.gov.uk/government/publications/pfippp-finance-guidance

HM Treasury. (2016). PFI/PF2/PPP forms. London, UK: HM Treasury.

Hodge, G. A. (2004). The risky business of public–private partnerships. Australian Journal of Public Administration, 63(4), 37-49. https://doi.org/10.1111/j.1467-8500.2004.00400.x

Hodge, G. A., & Greve, C. (2007). Public–private partnerships: an international performance review. Public Administration Review, 67(3), 545-558. https://doi.org/10.1111/j.1540-6210.2007.00736.x

Holmes, J., Capper, G., & Hudson, G. (2006). Public private partnerships in the provision of health care premises in the UK. International Journal of Project Management, 24(7), 566-572. https://doi.org/10.1016/j.ijproman.2006.07.004

Jefferies, M. (2006). Critical success factors of public private sector partnerships: a case study of the Sydney SuperDome. Engineering, Construction and Architectural Management, 13(5), 451-462. https://doi.org/10.1108/09699980610690738

Kagioglou, M., Cooper, R., & Aouad, G. (2001). Performance management in construction: a conceptual framework. Construction Management and Economics, 19(1), 85-95. https://doi.org/10.1080/01446190010003425

Ke, Y., Wang, S., Chan, A. P. C., & Cheung, E. (2011). Understanding the risks in China’s PPP projects: ranking of their probability and consequence. Engineering, Construction and Architectural Management, 18(5), 481-496. https://doi.org/10.1108/09699981111165176

Kumaraswamy, M. M., Ling, F. Y. Y., Anvuur, A. M., & Rahman, M. M. (2007). Targeting relationally integrated teams for sustainable PPPS. Engineering, Construction and Architectural Management, 14(6), 581-596. https://doi.org/10.1108/09699980710829030

Leiringer, R., & Schweber, L. (2010). Managing multiple markets: big firms and PFI. Building Research & Information, 38(2), 131-143. https://doi.org/10.1080/09613210903027147

Liu, J., Love, P. E. D., Davis, P. R., Smith, J., & Regan, M. (2015a). Conceptual framework for the performance measurement of public-private partnerships. Journal of Infrastructure Systems, 21(1). https://doi.org/10.1061/(ASCE)IS.1943-555X.0000210

Liu, J., Love, P. E. D., Smith, J., Matthews, J., & Sing, C. P. (2016). Praxis of performance measurement in public-private partnerships: moving beyond the iron triangle. Journal of Management in Engineering, 32(4). https://doi.org/10.1061/(ASCE)ME.1943-5479.0000433

Liu, J., Love, P. E. D., Smith, J., Regan, M., & Palaneeswaran, E. (2015b). Review of performance measurement: implications for public-private partnerships. Built Environment Project and Asset Management, 5(1), 35-51. https://doi.org/10.1108/BEPAM-12-2013-0070

Liyanage, C., & Villalba-Romero, F. (2015). Measuring success of PPP transport projects: a cross-case analysis of toll roads. Transport Reviews, 35(2), 140-161. https://doi.org/10.1080/01441647.2014.994583

MOF. (2014). Circular on the issuance of public-private partnership mode operation guide (trial).

Neely, A. (1999). The performance measurement revolution: why now and what next? International Journal of Operations & Production Management, 19(2), 205-228. https://doi.org/10.1108/01443579910247437

Neely, A., Adams, C., & Crowe, P. (2001). The performance prism in practice. Measuring Business Excellence, 5(2), 6-13(18). https://doi.org/10.1108/13683040110385142

Neely, A., Adams, C., & Kennerley, M. (2002). The performance prism: the scorecard for measuring and managing business success. Financial Times Prentice Hall.

Osei-Kyei, R., Chan, A. P. C., Javed, A. A., & Ameyaw, E. E. (2017). Critical success criteria for public-private partnership projects: international experts’ opinion. International Journal of Strategic Property Management, 21(1), 87-100. https://doi.org/10.3846/1648715X.2016.1246388

People’s Daily Online. (2000). Chengdu is in urgent need of water. Retrieved from http://www.people.com.cn/GB/channel4/27/20000724/156479.html

Pollock, A. M., Price, D., & Player, S. (2007). An examination of the UK treasury’s evidence base for cost and time over-run data in UK value-for-money policy and appraisal. Public Money & Management, 27(2), 127-134. https://doi.org/10.1111/j.1467-9302.2007.00568.x

PricewaterhouseCoopers. (2010). Public_private_partnerships: The US perspective. Las Vegas, NV: PricewaterhouseCoopers LLP.

Raisbeck, P., Duffield, C., & Xu, M. (2010). Comparative performance of PPPs and traditional procurement in Australia. Construction Management and Economics, 28(4), 345-359. https://doi.org/10.1080/01446190903582731

Rajan, T. A., Gopinath, G., & Behera, M. (2014). PPPs and project overruns: evidence from road projects in India. Journal of Construction Engineering and Management, 140(5). https://doi.org/10.1061/(ASCE)CO.1943-7862.0000797

Robinson, H. S., & Scott, J. (2009). Service delivery and performance monitoring in PFI/PPP projects. Construction Management and Economics, 27(2), 181-197. https://doi.org/10.1080/01446190802614163

Roca Consulting. (2017). Overview of PPP projects and analysis of PPP index in Sichuan Province. Chengdu, Roca Consulting.

Şentürk, H. A., Yazici, G., & Kaplanoğlu, S. B. (2004). Case study: Izmit domestic and industrial water supply build-operate- transfer project. Journal of Construction Engineering and Management, 130(3), 449-454. https://doi.org/10.1061/(ASCE)0733-9364(2004)130:3(449)

Shen, L.-Y., Platten, A., & Deng, X. (2006). Role of public private partnerships to manage risks in public sector projects in Hong Kong. International Journal of Project Management, 24(7), 587-594. https://doi.org/10.1016/j.ijproman.2006.07.006

Sobhiyah, M. H., Bemanian, M. R., & Kashtiban, Y. K. (2009). Increasing VFM in PPP power station projects – case study: Rudeshur gas turbine power station. International Journal of Project Management, 27(5), 512-521. https://doi.org/10.1016/j.ijproman.2008.07.002

Talbot, C. (2010). Theories of performance: organizational and service improvement in the public domain (1rst ed.). Oxford: Oxford University Press.

Tiong, R. L. K. (1990). Comparative study of BOT projects. Journal of Management in Engineering, 6(1), 107-122. https://doi.org/10.1061/(ASCE)9742-597X(1990)6:1(107)

Vaismoradi, M., Turunen, H., & Bondas, T. (2013). Content analysis and thematic analysis: implications for conducting aqualitative descriptive study. Nursing & Health Sciences, 15(3), 398-405. https://doi.org/10.1111/nhs.12048

Victoria State Government. (2017). Partnerships Victoria-Excellence in public private partnerships. Retrieved from http://www.dtf.vic.gov.au/Infrastructure-Delivery/Public-private-partnerships/Partnerships-Victoria-Excellence-in-public-private-partnerships

Wang, S. Q., & Tiong, L. K. (2000). Case study of government initiatives for PRC’s BOT power plant project. International Journal of Project Management, 18(1), 69-78. https://doi.org/10.1016/S0263-7863(98)00072-6

Wang, S. Q., Tiong, R. L. K., Ting, S. K., Chew, D., & Ashley, D. (1998). Evaluation and competitive tendering of BOT power plant project in China. Journal of Construction Engineering and Management, 124(4), 333-341. https://doi.org/10.1061/(ASCE)0733-9364(1998)124:4(333)

Ward, S., Curtis, B., & Chapman, C. (1991). Objectives and performance in construction projects. Construction Management and Economics, 9(4), 343-353. https://doi.org/10.1080/01446199100000027

World Bank. (2014). Public-private partnerships reference guide v2.0. Retrieved from http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/09/08/000442464_20140908133431/Rendered/PDF/903840PPP0Refe0Box385311B000PUBLIC0.pdf

Wu, J., Liu, J., Jin, X., & Sing, M. C. P. (2016). Government accountability within infrastructure public–private partnerships. International Journal of Project Management, 34(8), 1471-1478. https://doi.org/10.1016/j.ijproman.2016.08.003

Xu, Y., Yeung, J. F. Y., Chan, A. P. C., Chan, D. W. M., Wang, S. Q., & Ke, Y. (2010). Developing a risk assessment model for PPP projects in China – a fuzzy synthetic evaluation approach. Automation in Construction, 19(7), 929-943. https://doi.org/10.1016/j.autcon.2010.06.006

Yang, H., Yeung, J. F. Y., Chan, A. P. C., Chiang, Y. H., & Chan, D. W. M. (2010). A critical review of performance measurement in construction. Journal of Facilities Management, 8(4), 269-284. https://doi.org/10.1108/14725961011078981

Yuan, J., Yajun Zeng, A., Skibniewski, M. J., & Qiming, L. I. (2009). Selection of performance objectives and key performance indicators in public-private partnership projects to achieve value for money. Construction Management and Economics, 27(3), 253-270. https://doi.org/10.1080/01446190902748705

Zhang, S., Chan, A. P. C., Feng, Y., Duan, H., & Ke, Y. (2016). Critical review on PPP research – a search from the Chinese and International Journals. International Journal of Project Management, 34(4), 597-612. https://doi.org/10.1016/j.ijproman.2016.02.008

Zhang, S., Gao, Y., Feng, Z., & Sun, W. (2015). PPP application in infrastructure development in China: institutional analysis and implications. International Journal of Project Management, 33(3), 497-509. https://doi.org/10.1016/j.ijproman.2014.06.006