Research On Value For Money Assessment Of PPP Projects Based On Sustainable Development Goals

The unbalance development between government-led supply and the public demand in the process of economic and social is the origin of Public-Private-Partnership(PPP).PPP can help us to improve the supply efficiency and the distribution efficiency faced with our society.Therefore,compared with the traditional procurement,PPP model pays more attention to the efficiency and service quality of the whole life cycle,so as to achieve the economic,social and environm ental benefits of t operational he whole life cycle and to achieve the Value for Money(VfM)goal.The evaluation indicators of the VfM assessment system promulgated by the China government are not clear and incomplete,and there are few studies research on the relationship between sustainable development and PPP.Therefore,the purpose of this study is to integrate the concept of sustainable development into VfM assessment to build VfM assessment system of PPP projects based on sustainable development goals.The VfM assessment system changes the general index evaluation method in the traditional assessment system and evaluates VfM on the life cycle perspective,as well constructes the operation phase evaluation model.It can improve China' VfM assessment system of PPP projects and provide a theoretical reference for the relevant departments to make the VfM assessment system.First of all,the study reviews literature and government documents of VfM assessment of different countries to learn more about the definition and connotation of VfM,VfM assessment system,VfM assessment method and VfM assessment process.Literature review shows that the VfM assessment methods of PPP projects in four countries including U.K,U.S,Australia and Canada are similar.Qualitative assessment and quantitative assessment are both employed in four countries and quantitative assessment is based on Public Sector Comparator(PSC).There are also differences in the index chosen by different countries in qualitative assessment and the assessment thoughts of qualitative assessment.But neither of them conduct a separate assessment of the operation phase.Subsequently,a VfM assessment system based on the actual situation in China and sustainable development goals is constructed.The system is divided into decision-making stage and operation stage,evaluating from the aspects of economy,society and environment using qualitative assessment and quantitative assessment method.In the decision-making stage,qualitative analysis analyzes indicators and relevant factors need to consider in the economic,social and environmental aspects,then subject degree is employed to correct and select further.Fuzzy analytic hierarchy process(FAHP)is adopted to analyze the relative weight of the evaluation index.Quantitative analysis compares PSC and Life Cycle Cost(LCC)to calculate cost savings.In the operation stage,qualitative assessment and quantitative assessment are combined,and evaluation indicators and the factors to be considered in each aspect of relating to the economic,social,and environmental are considered.The relative weights of the evaluation indicators are analyzed and calculated by FAHP,and finally the relative weights of the evaluation indicators in the operation phase are obtained.Finally,the VfM assessment system is applied to the A municipal solid waste incineration power generation PPP project and B city heating PPP project.A municipal solid waste incineration power generation PPP project shows that the decision-making stage has passed both the quantitative and qualitative evaluation,indicating that the project passes the VfM assessment and is appropriate to adopt the PPP model.The result is in line with the conclusion made by the government and verifies the rationality of the VfM assessment system constructed in this study.The result of B city heating PPP project in operation stage also shows that the current operation of the project is justified.In the following research,the VfM assessment system in this study could be used to carry out relevant case studies and further verify the model,and continuously improve VfM assessment system through practice.