Interface Management for China’s Build–Operate–Transfer Projects

Abstract

Stringent pressure on public finances has made China’s infrastructure development a “bottleneck” in its bid to sustain rapid economic growth. As a result, many modalities have been developed to utilize the resources and skills of the private sector to supply essential infrastructure products and services, as well as to improve the efficiency in government procurement of the same. The build–operate–transfer (BOT) approach is an important example of these innovative modalities. The BOT approach in China is still in its infancy; many pitfalls await the unwary and obstacles impede more extensive application of this modality. The pitfalls are attributable to the complexities in the BOT approach, particularly when attempted in China’s transition economy emerging from decades of central planning to become one that is more market driven and globally integrated. This paper proposes two systems concepts to help manage this complexity: (1) a process modeling approach that maps key functions, parameters and interfaces in the project delivery process, and (2) the use of interface management involving specific measures that have contributed towards project success in Chinese BOT projects. The process modeling approach has led to the development of China’s BOT generic process model (CBGPM). Expert opinion was elicited on the criticality of the interfaces identified in CBGPM as well as the effectiveness of selected interface management measures. Finally, an interface management framework consisting of five key steps is suggested for China’s BOT projects.