Feasibility And Risk Of Applying Public-Private Partnerships In Urban Wastewater Management

Public–private partnership,or PPP,is a business model that involves a contract between a public sector authority and a private sector entity to provide public services or business venture.The 18 th National Congress of the Communist Party of China(CPC)in 2012 highlighted the importance of ecological civilization in the process of socio-economic development,which clearly indicates the government’s determination to pursue sustainable development.In line with rapid urbanization,over the past decade,the government has invested huge amount of budget in urban infrastructure such as wastewater treatment facilities.However,due to rapid development pace,government budgets are no longer enough to cope with the demand.As such,this study examines the feasibility of using PPP for urban wastewater treatment facilities.In this study,firstly PPP models and urban wastewater management systems were studied in detail in order to evaluate whether it is possible and there is a need to use PPP in urban wastewater management.Based on the positive conclusion,the study dived into the detailed PPP design options such as procurement methods,financing models,payment methods,and pricing mechanisms.Subsequently,the study assessed the potential risks of PPPs and recommended risk prevention measures.To test the validity of the above findings,a case study based on an existing PPP project in wastewater treatment was carried out.On a whole,the study concludes that PPP can effectively reduce government’s financial pressure while meeting the demand for better urban infrastructure and creating new investment opportunities to businesses.This study combines theoretical analyses and an on-the-ground case study to evaluate the need and advantages of PPP models in urban wastewater management.It provides important recommendations for diversifying financing options for urban wastewater management in China.