Planning Model of Infrastructure Project in China

Xiangrong Du, Tsunemi Watanabe

Research output: Contribution to journalArticleResearchpeer-review


In China, public services have been delivered to citizens at low prices and subsidized by government to a great extent since 1949.Government directly invested, constructed and operated public infrastructure. However, the single source of government investment could not satisfy the increasing demand on infrastructure projects.Moreover, the direct government investment and management of public utilities resulted in poor construction performance.In addition, the monopolistic operation of state-owned companies caused low operation efficiency, striking resources waste, and heavy fiscal burden due to the lack of specific obligation division between government and state company.

From 1994, the Chinese government began to attract foreign companies to participate in the investment, construction and operation of infrastructure projects mainly through BOT method.Since the China's entry into the WTO, the domestic private companies have been encouraged to invest and operate infrastructure projects, too.However, many privately financed infrastructure projects still encountered difficulty originated from excessive or inadequate government obligation.

The proper obligation division between government and private company becomes the key issue in infrastructure project planning.The authors aim to propose a proper project planning model which shall fit all kinds of infrastructure projects with various fund origins.The proposed planning model shall include a comprehensive planning framework and a six-step planning process.In particular, the financial indicator, i.e.self-reimbursement ratio is introduced for correct appraisal of project feasibility and proper obligation division between government and project company.
Original languageEnglish
Pages (from-to)201-212
Number of pages12
JournalJournal of construction Management, JSCE
Publication statusPublished - 2006
Externally publishedYes


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