Government Guarantee Decisions in PPP Wastewater Treatment Expansion Projects
Public private partnership (PPP) models are often used in delivering wastewater treatment (WWT) projects. When existing PPP projects need expansion due to higher demand for WWT, in many cases, the expansion may involve a new PPP contract involving a new concessionaire. Expansion PPPs have unique cha...
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| Format: | Article |
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MDPI AG
2020-11-01
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| Series: | Water |
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| Online Access: | https://www.mdpi.com/2073-4441/12/12/3352 |
| _version_ | 1797546224518168576 |
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| author | Liguang Wang Asheem Shrestha Wen Zhang Guangbin Wang |
| author_facet | Liguang Wang Asheem Shrestha Wen Zhang Guangbin Wang |
| author_sort | Liguang Wang |
| collection | DOAJ |
| description | Public private partnership (PPP) models are often used in delivering wastewater treatment (WWT) projects. When existing PPP projects need expansion due to higher demand for WWT, in many cases, the expansion may involve a new PPP contract involving a new concessionaire. Expansion PPPs have unique challenges as the sharing of responsibilities and risks can become complex. The complexities are further exacerbated when there are government guarantees involved. Structuring inappropriate guarantees can often lead to high costs for the government. This study focused on the choice of government guarantee in PPP expansion projects in the WWT sector by examining two popular guarantee mechanisms: minimum revenue guarantee and exclusive right. A decision model was developed and applied in a real WWT expansion PPP project in China to illustrate the optimal guarantee under varying circumstances related to service demand, expected unit price, and the existing guarantees in the existing PPP project. The contribution of the study lies in the applicability of the model to facilitate better decisions for the government in selecting the optimal guarantee mechanism in PPP expansion projects. |
| first_indexed | 2024-03-10T14:27:04Z |
| format | Article |
| id | doaj.art-4faa8a2fdad34629b76363a6fd461fb2 |
| institution | Directory Open Access Journal |
| issn | 2073-4441 |
| language | English |
| last_indexed | 2024-03-10T14:27:04Z |
| publishDate | 2020-11-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Water |
| spelling | doaj.art-4faa8a2fdad34629b76363a6fd461fb22023-11-20T22:53:23ZengMDPI AGWater2073-44412020-11-011212335210.3390/w12123352Government Guarantee Decisions in PPP Wastewater Treatment Expansion ProjectsLiguang Wang0Asheem Shrestha1Wen Zhang2Guangbin Wang3Department of Construction Management and Real Estate, Tongji University, Shanghai 200092, ChinaSchool of Architecture and Built Environment, Deakin University, Geelong, VIC 3220, AustraliaBrick Public Consulting Co., Ltd., Shenzhen 518054, ChinaDepartment of Construction Management and Real Estate, Tongji University, Shanghai 200092, ChinaPublic private partnership (PPP) models are often used in delivering wastewater treatment (WWT) projects. When existing PPP projects need expansion due to higher demand for WWT, in many cases, the expansion may involve a new PPP contract involving a new concessionaire. Expansion PPPs have unique challenges as the sharing of responsibilities and risks can become complex. The complexities are further exacerbated when there are government guarantees involved. Structuring inappropriate guarantees can often lead to high costs for the government. This study focused on the choice of government guarantee in PPP expansion projects in the WWT sector by examining two popular guarantee mechanisms: minimum revenue guarantee and exclusive right. A decision model was developed and applied in a real WWT expansion PPP project in China to illustrate the optimal guarantee under varying circumstances related to service demand, expected unit price, and the existing guarantees in the existing PPP project. The contribution of the study lies in the applicability of the model to facilitate better decisions for the government in selecting the optimal guarantee mechanism in PPP expansion projects.https://www.mdpi.com/2073-4441/12/12/3352public private partnershipsPPPswastewater treatmentgovernment guaranteedecision model |
| spellingShingle | Liguang Wang Asheem Shrestha Wen Zhang Guangbin Wang Government Guarantee Decisions in PPP Wastewater Treatment Expansion Projects Water public private partnerships PPPs wastewater treatment government guarantee decision model |
| title | Government Guarantee Decisions in PPP Wastewater Treatment Expansion Projects |
| title_full | Government Guarantee Decisions in PPP Wastewater Treatment Expansion Projects |
| title_fullStr | Government Guarantee Decisions in PPP Wastewater Treatment Expansion Projects |
| title_full_unstemmed | Government Guarantee Decisions in PPP Wastewater Treatment Expansion Projects |
| title_short | Government Guarantee Decisions in PPP Wastewater Treatment Expansion Projects |
| title_sort | government guarantee decisions in ppp wastewater treatment expansion projects |
| topic | public private partnerships PPPs wastewater treatment government guarantee decision model |
| url | https://www.mdpi.com/2073-4441/12/12/3352 |
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