Abstract: The government has provided trillions of PPPs at present, but the progress is lower than the expected. From the micro-aspect research, there are three reasons lead to low success rate of PPPs. Firstly, the PPPs’ financing scale is big, project cycle is long, risk matches return difficultly, asset specificity is strong, transaction cost is high, which determine the PPPs would spend more time and process. Secondly, the relevant subjects of PPPs behavior convergence is not enough, and has not formed consensus agreement. Thirdly, the relevant subjects have not enough enthusiasm to participate in PPPs because of asymmetric information, path dependence, incomplete contracts and lack of trust each other. Foreign and domestic practical experience shows that perfect unity laws and regulations, scientific and reasonable risk sharing mechanism, efficient and professional management institutions, and strict regulatory system are crucial to the success of the PPPs. Finally, we give some recommendations to speed up the PPPs progress.
Full report :WP No.20162 Difficulties in Application of PPP Models.pdf
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