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Duan Bingde

International experience and implications of PPP models


By Meng Chun, Department of Macroeconomic Research, Development Research Center of the State Council (DRC), and Gao Wei, Foreign Affairs Ministry International Economic Affairs Dept.

Research report No 64, 2014 (Total No 4563)


A Public—Private—Partnership (PPP) refers to cooperation between government and the private sector in providing goods and services, with the government involved in the entire process and combining government resources with private investment for the best consumer goods. The model has seen some progress and has been popular in public management since the 1990s. The PPP success is based on the following: examining and approving projects in a prudent approach, a clearly committed mechanism, a motivation mechanism, rewards and punishments, reasonable risk sharing, a good environment and the needed support. This study summarizes PPP's international experiences and development and it provides suggestions with China's own situation in mind, such as strengthening legal support for PPP, establishing a special administrative department, choosing the proper mode and partner, increasing cooperation and public supervision, sharing risks and improving risk controls.