The Bargaining Power Evaluation Research On Overseas PPP Cooperative Mode

Public-Private Partnership is a popular cooperation mode using widely in international project market.The Chinese government is also the supporter of this cooperation mode.Because of the uniqueness of this mode on the aspects of risk allocation and project financing,the tender procedure is much more complicated than the traditional projects.Thus,a research on the key elements of the PPP project will be valuable both on the theory building and project managing.By introducing the theory of bargaining power into the research of PPP cooperation,using the Case Study methods,this paper carried out a pilot study on a live PPP project which the author had took part in.Firstly,the project is described in detail thoroughly.The author picked four main lines from the negotiation process and examined every dots on the main lines.Using the method of “Questioning and Answering”,2 domains 18 elements was defined to be the key elements.Secondly,the impact of the elements on the bargaining power was analyzed and the signs which shows the bargaining power's shift was determined.Lastly,the elements which impact the bargaining power was detected and the coping strategy on behalf of the elements was also being provided.The main conclusions are as follows.Hypothesis 1: During the PPP project the one with the stronger bargaining power has more options for choosing the topic of negotiation,and is willing to spend more time on proposing better conditions for concession cooperation,and is willing to be better satisfied on the results of the negotiation during the PPP project.Hypothesis 2: During the PPP project the one with the weaker bargaining power tends to use the integrative strategy to avoid negotiation impasse,the stronger bargaining power tends to use the distributive strategy to promote the negotiation.Hypothesis 3: During the PPP project the one with the weaker bargaining power tends to share correct and accurate understanding.This prospective study was performed to make a clear view for all the members who took part in the project and to offer a vivid reference for the Chinese associations.