IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i5p2551-d506585.html
   My bibliography  Save this article

Fuzzy Synthetic Evaluation of the Critical Success Factors for the Sustainability of Public Private Partnership Projects in China

Author

Listed:
  • Binchao Deng

    (School of Management, Tianjin University of Technology, Tianjin 300384, China)

  • Dongjie Zhou

    (School of Management, Tianjin University of Technology, Tianjin 300384, China)

  • Jiachen Zhao

    (School of Management, Tianjin University of Technology, Tianjin 300384, China)

  • Yilin Yin

    (School of Management, Tianjin University of Technology, Tianjin 300384, China
    School of Management, Tianjin University, Tianjin 300072, China)

  • Xiaoyu Li

    (School of Management, Tianjin University of Technology, Tianjin 300384, China)

Abstract

Public Private Partnership (PPP) projects have attracted wide attention from academia and industry over the past 20 years, however, they have been plagued by certain factors. This study identified, classified, and evaluated the success factors that may affect PPP projects for achieving sustainability. First, a list of 32 critical success factors were categorized into 3 groups, then a questionnaire survey was conducted, with 108 responses received from experts, researchers, and PPP project managers in China. Second, using a fuzzy synthetic evaluation (FSE) method, stakeholder relationships (A 1 –A 10 ), external environmental (B 1 –B 8 ), and project management of a special purpose vehicle (C 1 –C 14 ) collected data at three different factor group locations in PPP projects were used in this evaluation. The results obtained nine top factors: private sector financing capacity, government credit, government commitment or guarantee, completeness of legal framework, available financial markets, the feasibility study report and implementation, effectiveness of risk management, project investment, and cost control and revenue distribution. It was demonstrated that fuzzy synthetic evaluation techniques are quite appropriate techniques for PPP projects. The research findings should impact on policy development towards PPP and Private Finance Initiative (PFI) project governance.

Suggested Citation

  • Binchao Deng & Dongjie Zhou & Jiachen Zhao & Yilin Yin & Xiaoyu Li, 2021. "Fuzzy Synthetic Evaluation of the Critical Success Factors for the Sustainability of Public Private Partnership Projects in China," Sustainability, MDPI, vol. 13(5), pages 1-23, February.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:5:p:2551-:d:506585
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/5/2551/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/5/2551/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yan Li & Xinyu Wang, 2018. "Risk assessment for public–private partnership projects: using a fuzzy analytic hierarchical process method and expert opinion in China," Journal of Risk Research, Taylor & Francis Journals, vol. 21(8), pages 952-973, August.
    2. Pfnür, Andreas & Armonat, Stefan, 2013. "Modelling uncertain operational cash flows of real estate investments using simulations of stochastic processes," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 63593, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    3. S. O. Cheung & C. M. Tam & I. Ndekugri & F. C. Harris, 2000. "Factors affecting clients' project dispute resolution satisfaction in Hong Kong," Construction Management and Economics, Taylor & Francis Journals, vol. 18(3), pages 281-294.
    4. Bing Li & A. Akintoye & P. J. Edwards & C. Hardcastle, 2005. "Critical success factors for PPP/PFI projects in the UK construction industry," Construction Management and Economics, Taylor & Francis Journals, vol. 23(5), pages 459-471.
    5. Verhoest, Koen & Petersen, Ole Helby & Scherrer, Walter & Murwantara Soecipto, Raden, 2014. "Policy commitment, legal and regulatory framework, and institutional support for PPP in international comparison: Indexing countries’ readiness for taking up PPP," Working Papers in Economics 2014-3, University of Salzburg.
    6. José Luis Guasch & Daniel Benitez & Irene Portabales & Lincoln Flor, 2014. "The Renegotiation of PPP Contracts: An Overview of its Recent Evolution in Latin America," International Transport Forum Discussion Papers 2014/18, OECD Publishing.
    7. Roberto Moro Visconti & Laura Martiniello & Donato Morea & Elisa Gebennini, 2019. "Can Public-Private Partnerships Foster Investment Sustainability in Smart Hospitals?," Sustainability, MDPI, vol. 11(6), pages 1-19, March.
    8. N. Carbonara & N. Costantino & L. Gunnigan & R. Pellegrino, 2015. "Risk Management in Motorway PPP Projects: Empirical-based Guidelines," Transport Reviews, Taylor & Francis Journals, vol. 35(2), pages 162-182, March.
    9. Wu, Yunna & Song, Zixin & Li, Lingwenying & Xu, Ruhang, 2018. "Risk management of public-private partnership charging infrastructure projects in China based on a three-dimension framework," Energy, Elsevier, vol. 165(PA), pages 1089-1101.
    10. Akbari Ahmadabadi, Ali & Heravi, Gholamreza, 2019. "Risk assessment framework of PPP-megaprojects focusing on risk interaction and project success," Transportation Research Part A: Policy and Practice, Elsevier, vol. 124(C), pages 169-188.
    11. Shiying Shi & Heap-Yih Chong & Lihong Liu & Xiaosu Ye, 2016. "Examining the Interrelationship among Critical Success Factors of Public Private Partnership Infrastructure Projects," Sustainability, MDPI, vol. 8(12), pages 1-20, December.
    12. Ahmadabadi, Ali Akbari & Heravi, Gholamreza, 2019. "The effect of critical success factors on project success in Public-Private Partnership projects: A case study of highway projects in Iran," Transport Policy, Elsevier, vol. 73(C), pages 152-161.
    13. Sérgio Domingues & Dejan Zlatkovic, 2015. "Renegotiating PPP Contracts: Reinforcing the 'P' in Partnership," Transport Reviews, Taylor & Francis Journals, vol. 35(2), pages 204-225, March.
    14. Antonella Lomoro & Giorgio Mossa & Roberta Pellegrino & Luigi Ranieri, 2020. "Optimizing Risk Allocation in Public-Private Partnership Projects by Project Finance Contracts. The Case of Put-or-Pay Contract for Stranded Posidonia Disposal in the Municipality of Bari," Sustainability, MDPI, vol. 12(3), pages 1-18, January.
    15. Ivan Lai & Frankie Lam, 2010. "Perception of various performance criteria by stakeholders in the construction sector in Hong Kong," Construction Management and Economics, Taylor & Francis Journals, vol. 28(4), pages 377-391.
    16. Jingfeng Yuan & Alex Yajun Zeng & Miroslaw Skibniewski & Qiming Li, 2009. "Selection of performance objectives and key performance indicators in public-private partnership projects to achieve value for money," Construction Management and Economics, Taylor & Francis Journals, vol. 27(3), pages 253-270.
    17. Goran Amović & Rado Maksimović & Sonja Bunčić, 2020. "Critical Success Factors for Sustainable Public-Private Partnership (PPP) in Transition Conditions: An Empirical Study in Bosnia and Herzegovina," Sustainability, MDPI, vol. 12(17), pages 1-29, September.
    18. Laura Martiniello & Donato Morea & Francesco Paolone & Riccardo Tiscini, 2020. "Energy Performance Contracting and Public-Private Partnership: How to Share Risks and Balance Benefits," Energies, MDPI, vol. 13(14), pages 1-19, July.
    19. Athena Roumboutsos & Aristeidis Pantelias, 2015. "Allocating Revenue Risk in Transport Infrastructure Public Private Partnership Projects: How it Matters," Transport Reviews, Taylor & Francis Journals, vol. 35(2), pages 183-203, March.
    20. Champika Liyanage & Felix Villalba-Romero, 2015. "Measuring Success of PPP Transport Projects: A Cross-Case Analysis of Toll Roads," Transport Reviews, Taylor & Francis Journals, vol. 35(2), pages 140-161, March.
    21. Raden Murwantara Soecipto & Koen Verhoest, 2018. "Contract stability in European road infrastructure PPPs: how does governmental PPP support contribute to preventing contract renegotiation?," Public Management Review, Taylor & Francis Journals, vol. 20(8), pages 1145-1164, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Han Zhang & Shiying Shi & Fangfang Zhao & Xiaosu Ye & Hanyue Qi, 2023. "A Study on the Impact of Team Interdependence on Cooperative Performance in Public–Private Partnership Projects: The Moderating Effect of Government Equity Participation," Sustainability, MDPI, vol. 15(17), pages 1-22, August.
    2. Isaac Akomea-Frimpong & Xiaohua Jin & Robert Osei-Kyei, 2022. "Mapping Studies on Sustainability in the Performance Measurement of Public-Private Partnership Projects: A Systematic Review," Sustainability, MDPI, vol. 14(12), pages 1-20, June.
    3. Guoli Feng & Shengyue Hao & Xiaoguang Li, 2022. "Project Sustainability and Public-Private Partnership: The Role of Government Relation Orientation and Project Governance," Sustainability, MDPI, vol. 14(8), pages 1-20, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nannan Wang & Minxun Ma & Yunfei Liu, 2020. "The Whole Lifecycle Management Efficiency of the Public Sector in PPP Infrastructure Projects," Sustainability, MDPI, vol. 12(7), pages 1-17, April.
    2. Ahmadabadi, Ali Akbari & Heravi, Gholamreza, 2019. "The effect of critical success factors on project success in Public-Private Partnership projects: A case study of highway projects in Iran," Transport Policy, Elsevier, vol. 73(C), pages 152-161.
    3. Ricardo Ferreira Reis & Joaquim Miranda Sarmento, 2019. "“Cutting costs to the bone”: the Portuguese experience in renegotiating public private partnerships highways during the financial crisis," Transportation, Springer, vol. 46(1), pages 285-302, February.
    4. Wang, Nannan & Gong, Zheng & Liu, Yunfei & Thomson, Craig, 2020. "The influence of governance on the implementation of Public-Private Partnerships in the United Kingdom and China: A systematic comparison," Utilities Policy, Elsevier, vol. 64(C).
    5. Kangsoo Kim & Jinoh Kim & Donghyung Yook, 2021. "Analysis of Features Affecting Contracted Rate of Return of Korean PPP Projects," Sustainability, MDPI, vol. 13(6), pages 1-21, March.
    6. Isaac Akomea-Frimpong & Xiaohua Jin & Robert Osei-Kyei, 2022. "Mapping Studies on Sustainability in the Performance Measurement of Public-Private Partnership Projects: A Systematic Review," Sustainability, MDPI, vol. 14(12), pages 1-20, June.
    7. Akbari Ahmadabadi, Ali & Heravi, Gholamreza, 2019. "Risk assessment framework of PPP-megaprojects focusing on risk interaction and project success," Transportation Research Part A: Policy and Practice, Elsevier, vol. 124(C), pages 169-188.
    8. Henry J Liu & Peter ED Love & Jim Smith & Michael CP Sing & Jane Matthews, 2018. "Evaluation of public–private partnerships: A life-cycle Performance Prism for ensuring value for money," Environment and Planning C, , vol. 36(6), pages 1133-1153, September.
    9. Jingfeng Yuan & Wenying Ji & Jiyue Guo & Mirosław J. Skibniewski, 2019. "Simulation-based dynamic adjustments of prices and subsidies for transportation PPP projects based on stakeholders’ satisfaction," Transportation, Springer, vol. 46(6), pages 2309-2345, December.
    10. Yang Wang & Qingying Li & Jian Zuo & Katharine Bartsch, 2022. "How Did Balance Loss Occur? A Cross-stakeholder Analysis of Risk Misallocation in a Sponge City PPP Project," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 36(13), pages 5225-5240, October.
    11. Dimas de Castro e Silva Neto & Carlos Oliveira Cruz & Joaquim Miranda Sarmento, 2017. "Understanding the patterns of PPP renegotiations for infrastructure projects in Latin America," Competition and Regulation in Network Industries, , vol. 18(3-4), pages 271-296, September.
    12. Xiaodan Zheng & Jingfeng Yuan & Jiyue Guo & Mirosław J. Skibniewski & Sujun Zhao, 2018. "Influence of Relational Norms on User Interests in PPP Projects: Mediating Effect of Project Performance," Sustainability, MDPI, vol. 10(6), pages 1-19, June.
    13. Goran Amović & Rado Maksimović & Sonja Bunčić, 2020. "Critical Success Factors for Sustainable Public-Private Partnership (PPP) in Transition Conditions: An Empirical Study in Bosnia and Herzegovina," Sustainability, MDPI, vol. 12(17), pages 1-29, September.
    14. Bao, Fengyu & Martek, Igor & Chan, Albert P.C. & Chen, Chuan & Yang, Yang & Yu, Heng, 2023. "Assessing the public-private partnership handover: Experience from China's water sector," Utilities Policy, Elsevier, vol. 80(C).
    15. Jin, Ruoyu & Chen, Qian & Soboyejo, Alfred, 2015. "Survey of the current status of sustainable concrete production in the U.S," Resources, Conservation & Recycling, Elsevier, vol. 105(PA), pages 148-159.
    16. Alireza Sharafi & Ata Allah Taleizadeh & Mohsen Sadegh Amalnick, 2018. "Fair Allocation in Financial Disputes Between Public–Private Partnership Stakeholders Using Game Theory," Service Science, INFORMS, vol. 10(1), pages 1-11, March.
    17. Soo-Yong Kim & Le Dinh Thuc, 2020. "Sustainable Location Selection for Investing in Public–Private Partnership Infrastructure Projects: From a Developing Country’s Perspective," Sustainability, MDPI, vol. 12(15), pages 1-19, July.
    18. Libiao Bai & Yi Li & Qiang Du & Yadan Xu, 2017. "A Fuzzy Comprehensive Evaluation Model for Sustainability Risk Evaluation of PPP Projects," Sustainability, MDPI, vol. 9(10), pages 1-22, October.
    19. Dejan Makovšek & Marian Moszoro, 2018. "Risk pricing inefficiency in public–private partnerships," Transport Reviews, Taylor & Francis Journals, vol. 38(3), pages 298-321, May.
    20. Garrido, Laura & Gomez, Juan & Baeza, María de los Ángeles & Vassallo, José Manuel, 2017. "Is EU financial support enhancing the economic performance of PPP projects? An empirical analysis on the case of spanish road infrastructure," Transport Policy, Elsevier, vol. 56(C), pages 19-28.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:5:p:2551-:d:506585. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.