Chinese cities have embarked on a task to construct rail mass transit systems on an unprecedented scale. Little has been reported on how China's municipalities have managed to secure funding for capital investment and operational subsidy, particularly concerning how private or overseas investors have become involved. Using Shenzhen as a case study, this paper reveals three elements that make public–private partnership work for China's urban mass transit: (a) a deep knowledge of China's formal and informal institutions, (b) a realignment of the goals and constraints for transit operation, and (c) a redesign of the mechanism for revenue stabilization.
Get full access to this article
View all access options for this article.
References
1.
SalzbergA., MehndirattaS., and LiuZ.Urban Rail Development in China: The Challenges Ahead. In Transportation Research Record: Journal of the Transportation Research Board, No. 2275, Transportation Research Board of the National Academies, Washington, D.C., 2012, pp. 49–57.
2.
WangZ., WangJ., and HeD.Transit Policies and Potential Carbon Dioxide Emission Impacts: Some Insights from China's Recent Transit Priority Policies. In Transportation Research Record: Journal of the Transportation Research Board, No. 2287, Transportation Research Board of the National Academies, Washington, D.C., 2012, pp. 98–104.
3.
Ministry of Housing and Urban–Rural Development. The Safety and Quality of Urban Rail Construction Is Serious. Caixin Online, Dec. 5, 2012. http://companies.caixin.com/2012-12-05/100469098.html. Accessed June 2, 2013.
4.
KeY. J., WangS. Q., ChanA. P. C., and CheungE.Understanding the Risks in China's PPP Projects: Ranking of Their Probability and Consequence. Engineering, Construction, and Architectural Management, Vol. 18, No. 5, 2011, pp. 481–496.
WangS. Q., TiongL. K. R., TingS. K., and AshleyD.Evaluation and Management of Political Risks in China's BOT Projects. Journal of Construction Engineering and Management, Vol. 126, No. 3, 2000, pp. 242–250.
7.
SachsT., TiongL. K. R., and WangS. Q.Analysis of Political Risks and Opportunities in Public Private Partnerships (PPP) in China and Selected Asian Countries. Chinese Management Studies, Vol. 1, No. 2, 2007, pp. 126–148.
8.
FelsingerK.Private Partnership Handbook.Asian Development Bank, Manila, Philippines, 2008.
Halcrow Group Limited. A Tale of Three Cities: Urban Rail Concessions in Bangkok, Kuala Lumpur, and Manila.Report commissioned for the ADB–JBIC–World Bank East Asia and Pacific Infrastructure Flagship Study; Halcrow Group Limited, London, 2004.
11.
PhangS.-Y.Urban Rail Transit PPPs: Survey and Risk Assessment of Recent Strategies. Transport Policy, Vol. 14, 2007, pp. 214–231.
Municipal Research Center of Urban Planning, Land and Development of Shenzhen. Study for the Scale, Layout, Modes, and Depot Standard for Shenzhen Metro.
24.
HKMTR and the No. 3 Line Company Signed the Memorandum About the Cooperation in the No. 6 Line. MTR Newsletter., Vol. 5, Sept. 2010. http://www.mtrsz.com.cn/files/20110224/SZNL050.pdf. Accessed June 2, 2013.
25.
Serving the Community by Using the Private Sector: An Introductory Guide to Public–Private Partnerships (PPPs), 2nd ed., Hong Kong Efficiency Unit, 2008.
26.
HodgeG. A., and GreveC.Public–Private Partnerships: An International Performance Review. Public Administration Review, Vol. 67, No. 3, 2007, pp. 545–558.
27.
GrimseyD., and LewisK.Evaluating the Risks of Public Private Infrastructure Projects. International Journal of Project Management, Vol. 20, 2001, pp. 107–118.
28.
CheungE., ChanA. P. C., LamP. T. I., ChanD. W. M., and KeY. J.A Comparative Study of Critical Success Factors for Public Private Partnerships (PPP) Between Mainland China and the Hong Kong Special Administrative Region. Facilities, Vol. 30, No. 13/14, 2012, pp. 647–666.
