risk factors for ppp: the case of hzmb project in gprd metropolitan
DESCRIPTION
Risk Factors for PPP: the Case of HZMB Project in GPRD Metropolitan. Yao Yi, Associate Professor Guangzhou Academy of Social Sciences, China. HZMB Background. Hongkong-Zhuhai-Macao Bridge. PPP Development in China. - PowerPoint PPT PresentationTRANSCRIPT
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Risk Factors for PPP: the Case of HZMB Project in GPRD Metropolitan
Risk Factors for PPP: the Case of HZMB Project in GPRD Metropolitan
Yao Yi, Associate ProfessorGuangzhou Academy of Social Sciences, China
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HZMB Background
Hongkong-Zhuhai-Macao Bridge
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PPP Development in China
• Shajiao Thermal Plant, Shenzhen, 1988• Labin Power Plant, Guangxi, 1995
• National Olympic Stadium, 2003•Beijing Subway No.4 Line, 2005
First Round
Second Round
• No PPP national law or regulation• No PPP control organization Legal FrameworkLegal Framework
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Financing HZMB
Early 2008
End 2008
1990s
Estimated:
$ 2 billion
Funding Scheme by GD, HK, Macao:
Bridge: $6.3 billion
Overall: $9 billion
COST: Keep Rising
Feasibility Report:
Overall: $11 billion
Feasibility Report:
Overall: $11 billion
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Funding Model: from BOT to Government Funding
BOT Model
Early 2008:
Private investorGovernment subsidy
Government Funding
End of 2008:
Government capital fund bank loans
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Stake Holders:
Government 1
Private sector2
public3
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Stake Holders:
Government
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Stake Holders:
Private sector: Attitude: active→ less interested
Interests: profit prospect diminished
Public opposition: law case in 2010,
1 year delay & 5% cost rise
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Barriers for PPP in HZMB Case
Huge investment vs. Low market return
Legal constraints
Project coordination
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Conclusion: Risk Factors for PPP
Market return risk
Public opposition
Lengthy decision-making process
Loss of project uniqueness
RISK