ABSTRACT
China is the most densely populated country in the world with a population of over 1.37 billion. Since the introduction of economic reforms in 1978, which moved the country from a centrally planned economy towards a more market-oriented economy, China has become the fastest-growing major economy in the world. The drafting work commenced in February 2014, and the second author is one of the key drafting members. Public Private Partnership (PPPs) was introduced in China through the Shajiao B power plant project in the Guangdong province. In light of the current legal framework, two common business models have been adopted; namely Subsidise in Building-Operate-Transfer (SBOT) and Build-Subsidise in Operation-Transfer (BSOT). In a SBOT project, government is responsible for part of the construction, while in a BSOT project, government provides a subsidy during the operating period. The aim of these two models is to improve the financial self-liquidating ratio by sharing part of the cost or providing part of the revenue.
