ABSTRACT
This chapter reviews the application and development of Chinese Public-Private Partnerships (PPPs) by focusing on their background, evolution, frameworks, government organisations and policies, implementation, and risk. It summaries the drivers and barriers of PPP application, existing problems and challenges, critical successful factors and lessons learnt from the projects. It then presents a simple comparison of PPP practices in China and Western countries is provided, by suggestions on how to improve the PPP process in China with an outlook on possible application and development in the near future. The encouragement of private capital in the financing of public service facilities in China originated in the urbanisation process, and the tremendous economic growth created huge demand for infrastructure such as roads, water supply, waste treatment and power generation facilities. The most critical issues in the railway sector are the lower project financial self-liquidating ratios with unclear subsidiary and profit mechanisms.
