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Public–private partnerships in China: A case of the Beijing No.4 Metro line

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  • Chang, Zheng

Abstract

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.

Suggested Citation

  • Chang, Zheng, 2013. "Public–private partnerships in China: A case of the Beijing No.4 Metro line," Transport Policy, Elsevier, vol. 30(C), pages 153-160.
    • Handle: RePEc:eee:trapol:v:30:y:2013:i:c:p:153-160
    DOI: 10.1016/j.tranpol.2013.09.011
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    References listed on IDEAS

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    1. Phang, Sock-Yong, 2007. "Urban rail transit PPPs: Survey and risk assessment of recent strategies," Transport Policy, Elsevier, vol. 14(3), pages 214-231, May.
    2. de Jong, Martin & Mu, Rui & Stead, Dominic & Ma, Yongchi & Xi, Bao, 2010. "Introducing public–private partnerships for metropolitan subways in China: what is the evidence?," Journal of Transport Geography, Elsevier, vol. 18(2), pages 301-313.
    3. Erik-Hans Klijn & Geert R. Teisman, 2003. "Institutional and Strategic Barriers to Public—Private Partnership: An Analysis of Dutch Cases," Public Money & Management, Taylor & Francis Journals, vol. 23(3), pages 137-146, July.
    4. Mr. Etienne B Yehoue & Miss Mona Hammami & Jean-François Ruhashyankiko, 2006. "Determinants of Public-Private Partnerships in Infrastructure," IMF Working Papers 2006/099, International Monetary Fund.
    5. Matti Siemiatycki, 2010. "Delivering Transportation Infrastructure Through Public-Private Partnerships: Planning Concerns," Journal of the American Planning Association, Taylor & Francis Journals, vol. 76(1), pages 43-58.
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    Cited by:

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    2. Chang, Zheng & Phang, Sock-Yong, 2017. "Urban rail transit PPPs: Lessons from East Asian cities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 105(C), pages 106-122.
    3. Chen, Yawei, 2022. "Financialising urban redevelopment: Transforming Shanghai’s waterfront," Land Use Policy, Elsevier, vol. 112(C).
    4. Love, Peter E.D. & Ika, Lavagnon A. & Matthews, Jane & Li, Xinjian & Fang, Weili, 2021. "A procurement policy-making pathway to future-proof large-scale transport infrastructure assets," Research in Transportation Economics, Elsevier, vol. 90(C).
    5. Chang, Zheng, 2014. "Financing new metros—The Beijing metro financing sustainability study," Transport Policy, Elsevier, vol. 32(C), pages 148-155.
    6. Zhao, Jianfeng & Liu, Henry J. & Love, Peter E.D. & Greenwood, David J. & Sing, Michael C.P., 2022. "Public-private partnerships: A dynamic discrete choice model for road projects," Socio-Economic Planning Sciences, Elsevier, vol. 82(PA).
    7. Zhe Cheng & Huanming Wang & Wei Xiong & Dajian Zhu & Le Cheng, 2021. "Public–private partnership as a driver of sustainable development: toward a conceptual framework of sustainability-oriented PPP," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(1), pages 1043-1063, January.

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