Comparing the Efficiency of Public-Private Partnerships with the Traditional Procurement: Based on the Chengdu No. 6 Water Plant B

摘要

The central government has done its best to implement the Public-Private Partnerships (PPP). However, the government policy-makers, practitioners and researchers have little knowledge about whether the PPP procurement is more efficient for China when compared with the traditional procurement. The Chengdu No. 6 Water Plant B is an important and classical BOT project in China and it is nearly to be transferred to Chengdu government. So this paper did a Value for money (VFM) analysis on the Chengdu No. 6 Water Plant B to measure the efficiency of it. The results indicate that the Chengdu No. 6 Water Plant B should be purchased by PPP mode rather than by traditional mode. That is, the PPP procurement is prove to be more efficient than the traditional procurement. Given that the Chinese government is now promoting a wider range and larger scale of private participation in the infrastructure sector, this research is of vital and timely significance.