Factors Influencing Early Termination of PPP Projects in China

Abstract

The public-private partnership (PPP) mode is increasingly being applied to implement infrastructure projects worldwide to alleviate the shortage of government funds and experience. However, many PPP projects encounter crises and are even terminated before the expiration of the PPP contract due to a variety of factors that differ from general risks. Based on 23 selected PPP projects in China, this paper uses a multicase study to identify and analyze factors that influence early termination. Eleven influencing factors are identified as the main causes of the early termination of PPP projects in China. Among them, government decision error and government payment default are the most common factors. Counterstrategies are proposed to mitigate the impact of these factors. The results are expected to serve as a reference and provide inspiration for the host governments and private sectors of PPP projects.