Public–private partnerships in China: A case of the Beijing No.4 Metro line
mode - subway/metro, place - asia, economics - appraisal/evaluation, organisation - privatisation, organisation - contracting
Public and private partnership, Beijing metro development, Cost saving, Revenue and cost analysis
Through a case study on Beijing's No. 4 Metro line, this paper illustrates benefits, costs, opportunities and risks in public–private partnerships (PPP) in China. It describes the process to land a concession agreement; demonstrates the consequences for revenue and costs from using a private entrepreneur; and estimates the benefits to the public sector. By using a PPP model, the public sector may save up to 31% of its initial investment and 9.4% of total expenses during the concession. The private investor may earn a profit, but bears a risk due to absence of the rule of law.
Permission to publish the abstract has been given by Elsevier, copyright remains with them.
Chang, Z. (2013). Public–private partnerships in China: A case of the Beijing No.4 Metro line. Transport Policy, Volume 30, November 2013, Pages 153–160.
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