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1、DevelopmentofPublicPrivatePartnerships(PPPs)inChinaDrPaulHKHoChairman,QuantitySurveyingDivisionTheHongKongInstituteofSurveyorsAssociateHead,DivisionofBuildingScienceandTechnologyCityUniversityofHongKongIntroductionThereisnohardandfastdefinitionofpublicpri
2、vatepartnerships.OnewaythatPPPsmaybedefinedisasthepartnershipsbetweenthepublicsectorandtheprivatesectorforthepurposesofdesigning,planning,financing,constructingand/oroperatingprojectswhichwouldhavebeenregardedtraditionallyasbeingwithintheremitofthepublics
3、ector.PPPstakemanyforms.Examplesincludeprivatefinanceinitiatives,design-construct-maintain,build-own-operate,build-own-operate-transfer,buy-build-operate,sale-leaseback,etc.ThespectrumofpossiblePPPsextendsfrombusinessesalmostentirelycontrolledbytheprivate
4、sectoratoneend,tothosealmostentirelycontrolledbythepublicsectorattheother.PPPshavebeenincreasinglyusedinmanycountriesasanalternativeapproachfortheprocurementofpublicfacilitiesandservices.WhilePPPsarerelativelynewinChina,thereisagreatpotentialfortheirappli
5、cationduetothestrongdemandforpublicfacilitiesandservices.ThispaperistoexaminethedevelopmentofPPPsinChina.DevelopmentofPrivateSector’sParticipationinPublicFacilitiesInthepast,Chinaoperatedunderasocialistplannedeconomicssystem.Atthattime,allcompanieswereown
6、edbythePeople’sGovernmentandtherewerenoprivatecompaniesandfreemarkets.Startingfromearly1970s,Chinaintroducedanopeneconomicspolicyinsomeselectedcities.Somestate-ownedenterprisesinthosecitiesstartedtheirreformbyestablishingmoderncompanymanagementstructuresa
7、ndsystems.Withtheintroductionofcompanylaws,stated-ownedenterpriseswerere-structuredintolimitedliabilitycompanieswhichcouldbeownedbylocalandforeignerinvestors.Assomestated-ownedenterprisesbecameprivatecompanies,theprovisionofpublicfacilitiesandserviceswasn
8、olongermonopolizedbythegovernment.Intheearly1980s,limitedmarketcompetitionexistedinsomemajorcities.Atthatmoment,theeconomicswasstilldominatedbystated-ownedenterprises.Startingfromtheend1980sandearly1990s,morecitieso
