Critical Factors of Concession Pricing for Public-Private-Partnership Infrastructures: An Empirical Study Based on Chinese Urbanization

Abstract

Abstract. Public-Private-Partnership (PPP) approach is a useful tool to ease government's financial deficit in infrastructure and provide chances for private investors to enter into public sector of construction industry. However, many PPP projects claim failures because of loss of revenues attributable to unrealistic concession price. In this research, variables impacting concession price are outlined based on empirical data and literature review. These variables are categorized into four factors using exploratory factor analysis, i.e., institutional supports, corporate strategies, market dynamics, and external impacts. This finding is expected to serve as a common factor checklist for PPP participants when formulating a reasonable concession price for all kinds of PPP transportation infrastructure projects to facilitate a win-win situation for all stakeholders.