Research On Driving Factors Of Applying PPP In Waste-to-Energy Incineration Projects

The Huizhou municipal government wants to apply PPP model in the WTE incineration project construction.It is necessary and urgent that the private sectors must understand the purpose of the government and adjust the business strategy so as to better improve their competitiveness.In this paper,we want to find out the purpose of Huizhou municipal government to use PPP approach in WTE incineration project for all stakeholders especially private sectors.Based on case studies and literature reviews,we identified 15 driving factors of PPP projects in China's public sectors' perspective.Through the questionnaires collected from target departments from Huizhou,the relative importance of 15 PPP driving factors was investigated.We use exploratory factor analysis to process the collected data turning 15 driving factors into 5 comprehensive indicators which are factor groups.These groups reflect the purpose of the implementation of the PPP model in WTE incineration project of the Huizhou municipal government.The groups are providing better public service,effective using of time and money,gaining technology and management skills from private sectors,sharing risks among participants,transferring government functions.Through the result we can interpret the public partners want encourage private sector effectively satisfy the customers' need,provide quality service,solve the budget constrain,reduce the construction cost and also the maintenance cost.The public sector also cherish this PPP model as a key for the transformation of government functions.Correspondingly,the private sector,who want to cooperate with the public sectors,should consider how to win Huizhou PPP contract and maximize the benefits of investing through long-term contract arrangements.In order to attract the government,the private sector needs to maintain advanced technology,improve management skills and increase risk bearing capacity.