Research On The Allocation Of Control In Public-private Partnerships Projects Based On The Perspective Of Decision

Commercialization is necessary to improve the efficiency of the provision of public goods and serveices in PPP(Public-Private Partnerships) projects. However the public should have proper control right on the PPP projects due to the nature of the public goods and services. Reasonable allocation of the control rights is a necessary condition for success of PPP projects. Decisions are the carriers of the control rights.Firstly,a methodfor identifying constituent elements of a decision is proposed combining the WBS(Work Breakdown Structure) tooland Grounded Theory. Six elements of a decisionare summarized based on related theory. Then 28 major decisions in PPP projects are identified from six PPP standard contracts using the NVivo software.An expert survey is then conducted to evaluate the 28 decisions. FMEA(Failure Mode and Effects Analysis) and factor analysis are used to select indicators for evaluating decisions including their importance and decision parties in the processes of a decision-making.Secondly, PPP related regulations are interpreted from the perspective of control rights. The concept of “Reference Index” is proposed for analyzingthe statistical result from regulation interpretation andthe analysis is based on three perspectives i.e. different regulations, different processes of decision-making and different allocated parties of the control rights. A correlation analysis is conducted between the statistical result from regulation interpretation and from expert survey to explore allocation principles of control rights in PPP regulations. Some deficienciesare found from the analysis, such as the regulations’ target is not strong, the allocation of supervise rights is not clear and the incentives for the private is insufficient. Then some recommendations are proposed from three perspectives which are PPP legal system, project supervision and cooperation of publics and privates.Thirdly, a model for measuring the control right of PPP projects is established based on factor analysis and OLS(Ordinary Least Square) regression analysis. It isthen verified with two PPP cases. The model offered a method to measure the public’s controlon a PPP project when the control right allocation is determined. In the process of model establishment, some other conclusions are alsodrawn about the decision parties’ relevance to decision right in different decision-making process in PPP projects and reasonable proportion of PPP projects’ control right owned by the public.Finally, an influencing factor pool is established including 15 factors which may have an impact on allocation of PPP projects’ control rights. The factor pool is established based on factor analysis from three perspectives of decisions’ importance, i.e. seriousness, probability and detectingdifficulty of failure. Then both the OLS regression analysis and logistic regression analysis are used to identify and verify the influencing factors in the pool. Twelve factors are found to have a significant impact on the decision-making of proposal process and approval process in PPP projects. According to the conclusions on the various influencing factors, four allocation principles of the control rights in PPP projects are then summarized, i.e.the efficiency of the private should be taken advantage of, the control rights of the public should be fully decentralized, the PPP project should be “profitable” for the private and enough attention should be paid on cooperation between the public and private. Lastly a case study is conducted based on 1043 PPP projects from the perspective of control rights as supplement and verification of the conclusions above.