The Appropriateness Of Public Private Partnership

1728 WordsMay 17, 20157 Pages
The Appropriateness of Public-Private Partnership in Economically Affordable Housing in the Context of China 1 Introduction In recent decades, the rapid urbanisation in China has led to the fast economic growth alone with many social issues, especially housing problem. The Chinese government tried to build public housing to ease this situation. However, the lack of incentives and benefits in local government often obstruct the public housing projects from implementing. Thus, the increasing urbanisation, with most jobs concentrated in large cities, made the housing issue acute in major metropolitan areas. For example, the demand for public housing exceeds supply by approximately 2.6%, 4.2%, and 5.1% per year in Beijing, Shanghai, and Shenzhen, respectively (Zheng, 2012). The public housing problems not only lie in the quantity but also quality. The public housing provided by the local governments are questioned at different levels. Under the circumstances, the Chinese public sector could benefit from involving the private sector into the development of public housing. So the existing public housing problem maybe relief by implementing the Public-Private Partnership (PPP) model, which could help the Chinese government control the urgent situation and develop PPP housing in this complex political, legal, and financial environment (Huang and Tao, 2014). In the following sections, affordable housing in China and the necessity and feasibility of PPP in affordable housing in China
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