International Experience of Public-private Partnerships (ppp) for Urban Environmental Infrastructure and Its Application to China

Chinese government is facing the “capital bottleneck” problem for developing urban environmental infrastructure including sewerage treatment and MWS disposal services to achieve the environmental targets set for the 10 Five Year Plan. The solution is worked out as introducing the private investment. This study argue that Public Private Partnership (PPP) is the best available solution for developing urban environmental infrastructure in Asian developing countries including China, due to unavailability of public sector investment and due to operating inefficiencies in the public sector, to provide environmental services through private sector investment, and managerial and technical skills. The use of PPP is complex issues that should be addressed by government through its administrative and financial reform, but there is no experience of establishing PPP system in most of developing countries. We study on the key issues like target setting, tariff design, the role of government, the policy framework development for PPP, types and options of PPP and its strengths and weakness, and contractual arrangement of PPP projects based on the international experience and intend to extract its implication to China through the scheme of China Council for International Cooperation on Environmental & Development.