Value For Money On Public-Private Partnership In The Context Of New Urbanization

The concept of new urbanization is not only a sublimation on the basis of summarizing the problems of traditional urbanization and the experience and lessons from it, but an important grasp on realizing the rejuvenation of the Chinese nation.Public-Private Partnership(PPP) is considered as a new driving force on the condition that the traditional mode lacks the support for the construction of new urbanization. Although PPP has been widely used in the world, it has such drawbacks as complex operation and great difficulties in coordination owning to multi-party participation, etc; therefore, the mode is not applicable to all the projects.As a core concept of PPP, Value for Money(VfM) is not only an important method to evaluate whether PPP mode is applicable to a project, but also a way of realizing the connotative meaning of income and risk sharing. VfM has been masterly applied in foreign countries, but is being developed and introduced in China; by comparison, it has such limitations as the guidelines on instructions are comparatively broad, the risk analysis lacks clear guidelines and it’s not required to conduct VfM quantitative evaluation, etc. Considering the above-mentioned, the paper focuses on investigating the application and improvement of VfM evaluation process in China, segmenting PPP project risk quantization and sharing in VfM evaluation and carrying out the applicable VfM quantitative evaluation on the basis of PPP project under the overall background of new urbanization.On the basis of the above-mentioned research focuses, the paper attempts to carry out the analysis with domestic and foreign literatures as a point of penetration; through delving into the foreign experiences on PPP and VfM evaluation, it analyzes the theoretical foundation and realization mode of PPP mode and VfM evaluation, studies the key factors for success and the limitations and proposes the suggestions to apply and improve VfM evaluation process in China. Expert interview and questionnaire are adopted to study the quantization and transfer of PPP risk in VfM evaluation, and the quantitative analysis is carried out by means of the fuzzy analytical hierarchy process and statistic extreme method that are based upon fuzzy math, which is realized through Matlab software. Finally, a VfM empirical analysis is conducted in terms of the PPP project of the underground utility tunnel in Meizhou City, testifying the research focuses and results in practical case. Meanwhile, the research conclusions and the outlook on future research orientations are proposed.It is argued that to establish and apply mature risk model is of crucial significance in measuring the risk of VfM evaluation and when applied to VfM quantitative evaluation, the result can further improve the quality of PPP project, enable the conclusions to be more reliable when the VfM evaluation system with Chinese characteristics is constructed in newly-built large and complicate PPP project, and facilitate PPP to perform greater and better functions in China’s new urbanization.