Open Journal Systems

Cost Benefit Analysis of Public Construction Projects under PPP Operation Mode

WU Ke xin

Article ID: 2592
Vol 3, Issue 1, 2023

DOI: https://doi.org/10.54517/vfc.v3i1.2592
VIEWS - 42 (Abstract)

Abstract

The public-private partnership (PPP) model that the state vigorously promotes is becoming a focus of stabilizing growth and adjusting structure. However, the application of the PPP model in public construction projects in China is still in its infancy. When the government makes project decisions, how to clarify the project risks, requirements and opportunities undertaken by all participants and weigh the external benefits brought by the PPP model has become an urgent problem to be solved to promote the reform of public service projects in China. Starting from practice, this paper reviews the relationship between school infrastructure investment and student performance involved in new school projects and the pros and cons of introducing the PPP model in the education field under the PPP framework. By comparing new PPP schools and non-PPP new schools in Victoria, Australia, the case is analyzed in multiple dimensions, it is concluded that there are indeed differences in operating expenditure and education performance between PPP schools and non –PPP schools. PPP schools have higher operating expenses than non-PPP schools and their educational achievements are also more prominent. The cumulative curve shows that the PoF of PPP school project operating expenditure is 48.37%, slightly higher than 48.05% of non-PPP school project. According to conclusion of this case data statistics, the introduction of the PPP model is explained to increase school infrastructure investment and promote better educational outcomes to a certain extent. School projects under the PPP framework can promote good educational achievements and provide theoretical support and countermeasures.

Keywords

PPP; School infrastructure investment; Education achievement; Hypothesis testing.

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