| Author: | Ng, Ho Man |
| Title: | Public-private partnership (PPP) of environmental services in China: the case of Guangdong waste incineration |
| Degree: | D.B.A. |
| Year: | 2020 |
| Subject: | Public-private sector cooperation -- China Pollution control industry -- China Hong Kong Polytechnic University -- Dissertations |
| Department: | Faculty of Business |
| Pages: | 305 pages |
| Language: | English |
| Abstract: | The rapid growth of population and urbanization has given rise to uncontrollable waste generation and insufficient municipal waste treatment facilities in China. Landfill is not a sustainable option due to significant shortage of land capital. Although incineration provides a Waste-to-Energy (WTE) solution, it requires a significant investment in capital. To expedite the construction of WTE facilities and minimize the financial stress of local government, Public-Private-Partnerships (PPP) for incineration facilities have become a viable solution for waste management. The PPP arrangement is complicated because it takes a long time to implement, it includes different kinds of service while China is not familiar with the logistics and mechanisms for implementation. China has adopted more or less the same procedure as developed countries like the United Kingdom, but will face differences in implementation due to the differences in culture, political and economic structure. It will be valuable to compare the socialist market economy in China against the market economy in developed countries to better understand the differences, identify investment opportunities and develop the strategies for success. The framework of this study covers the entire process involved in developing a PPP project, starting with project identification and ending in project transfer, through the review and analysis of its legal framework, financial management and control, process and institutional development, stakeholders and public participation. This research has adopted a qualitative approach, including an extensive literature and data collected through interviews with field managers, professionals and experts in the PPP environmental industry. Although the PPP model and process are similar to that of foreign countries when it comes to implementation, China is unique as the PPP rules and regulations are under the leadership of two ministries. The Ministry of Finance (MOF) handles the financial and economic aspects of the PPP while the National Development and Reform Commission (NDRC) provides political and national strategic plans. This paper studies the efficiency, governance and financing of new PPP in a socialist market economy under authoritarian leadership. The Chinese legislation remains imperfect with continuous modifications and changes. And as rules overlap and contracts remain vague, it's become increasing difficult to understand PPP projects in China. The long-term contractual relationship under the PPP model also increases the uncertainty of execution. Financial management and control of PPP implementation seem to run very smoothly yet are heavily influenced by government policy. The financial management problems such as Value for Money (VFM) assessments have yet to be reviewed and addressed. Under a planned market economy, numerous subsidy policies promote preferred industries and projects in China. Investors can be benefited by lowering their capital investments and operating costs so as to obtain the financing of their project. However, various subsidies are subject to the government policy and may be withdrawn upon maturity of the industry or government financial capability. Besides, the PPP process and institutions are inefficient and weak in supervision. There are two sets of PPP process and the frequent changes of PPP regulations, the comprises of contractual obligations and limited experience in PPP contract supervision lowers the governance of PPP contract execution. It is important to understand that social capital in China has included the participation of Stated-owned Enterprises (SOE) that has transcended all other competitors. Because of this, the private sector needs to identify its strengths before it can find opportunities to develop projects or business in China, or through partnership with the SOEs to enter to the China market. It is observed that public participation is passive and limited as projects are dominated by the government. Gradual changes and the improvement of institutions need to pay close attention to government policy. It remains positive that PPP and WTE businesses will continue to enjoy rapid growth in the coming years, so as to deliver an ecologically-developed society in the future. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 5015.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 2.44 MB | Adobe PDF | View/Open |
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