Report: Investigation of Public Private Partnerships in China

This report analyzes the article "INVESTIGATION INTO THE APPLICATION OF PUBLIC PRIVATE PARTNERSHIPS AS A PROJECT DELIVERY METHOD IN CHINA" by Moynihan, Liu, and Batson (2018). The article explores the application of public-private partnerships (PPPs) in the Chinese construction industry, examining its benefits, risks, and evolution. The report summarizes the article's aims, which include analyzing PPPs as a project delivery system, the authors' viewpoints on the subject, and the conclusions drawn. The construction industry's growth and the increasing adoption of PPPs are highlighted, emphasizing their role in delivering public assets and services. The report outlines the advantages of PPPs, such as improved public service, reduced government debt, and risk distribution, while also acknowledging the challenges associated with their implementation, including regulatory issues and the need for experienced personnel. The analysis highlights the impact of PPPs on China's construction sector, providing valuable insights for construction companies and researchers. The report emphasizes the importance of selecting the appropriate delivery method for project success and the potential risks of immature PPP practices.

Running head: ARTICLE ANALYSIS
Article Analysis
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1ARTICLE ANALYSIS
The article “Investigation into the application of Public Private Partnerships as a
Project Delivery Method in China” is written by Moynihan, Liu and Batson (2018)1. It is all
about partnership of public and private organisations, construction project, and construction
contract and project delivery system. This paper shall elaborate on presenting a summary on
this article highlighting its aims and objectives, what the authors have to say on this subject
and the final conclusion and findings revealed by the article.
Every day, there are a huge number and varieties of contractual agreements are done
for the construction related projects globally. The industry is flourishing and it is supposed to
grow to 10.3 trillion US dollars by the end of 2020 if it remains growing at this rate. India,
China and United States are leading in terms of growth in construction industry at present.
People today make use of new and variety of project delivery methods including Integrated
Project Delivery (IPD), Construction Management at Risk (CMAR), Design-Build (DB) and
Design-Bid-Build (DBB). Among these methods, DBB is the most widely used one.
However, in the recent years, there has been increasing usage of DB and CMAR in the
modern projects. Notwithstanding this fact, the authors of this article have claimed that it is
very important to choose the right delivery method to ensure success of the construction
project.
Since past two decades, there has been increase in the rate at which the subnational
governments and countries world-wide are developing different institutional structures for the
management, development and promotion of public private partnerships. It is one of the
variations of DB (Design-Build) and is a long lasting contract among the private entity and
the government that provides a public asset or service. However, in this contract, it is the
private entity that bears the major risk and high management responsibility.
1 Moynihan, Gary P., Tianhan Liu, and Robert G. Batson. "INVESTIGATION INTO THE APPLICATION OF PUBLIC PRIVATE PARTNERSHIPS AS A
PROJECT DELIVERY METHOD IN CHINA." International Journal of Construction Project Management 10.1 (2018): 3-16.

2ARTICLE ANALYSIS
The article has shed light on the major benefits of public private partnership delivery
and it starts from in the introduction of better service to the public, relieving the burden of
debt for the government, creation of more opportunities for investment for the private sector,
creation of more incentive for completing the project on the given deadline and within
budget, improvement in terms of local economy condition and distribution of the risks for
both the private and public sectors. There are many participants in the project of public
private partnership and they are- the public sector (government), special purpose vehicle
(SPV), financial institution, consulting group and private sector (the private firm).
With the same, it is also to mention that there are many risks associated with the
process of public private partnership projects. The improvement or advancement of the public
private partnership was hindered because of the frequent issues and deficiencies in practice.
Also, revised regulations and laws can result in changes in the contract validity. It is that
delivery method that is becoming highly popular all around the world, especially in the
countries like India and China. The first public private partnership stadium project was built
in China by the name of National Stadium or Bird’s Nest. It was originally designed with
retractable roof, but was suspended because of the order from government in the year 2004.
Two months later, new construction was done and it was focused on the need for a
supporting, regulatory and comprehensive system with clear authority arrangement in the
contract. With the same, it is also very important to maintain good working relationship with
the public sector and make sure that the personnel participating in the project company have
equal and related experience in the industry of infrastructure facility.
The article has aided to the already prevailing research literature of knowledge on the
subject of construction project management. It has successfully traced the adoption and
evolution of the public private partnerships as project delivery vehicle in the country of
China. All the advantages, disadvantages and the future directions are clearly demonstrated

3ARTICLE ANALYSIS
by the article. The construction companies of China can use these knowledge in practical
implications during building public projects in the country. However, it is to note that lack of
maturity in the use of the delivery methods can result in risks for both the client and the
contractor.

4ARTICLE ANALYSIS
References:
Moynihan, Gary P., Tianhan Liu, and Robert G. Batson. "INVESTIGATION INTO THE
APPLICATION OF PUBLIC PRIVATE PARTNERSHIPS AS A PROJECT DELIVERY
METHOD IN CHINA." International Journal of Construction Project Management 10.1
(2018): 3-16.