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Critical success factors for build–operate–transfer (BOT) projects in China

Jiaju Yang
Jiaju Yang
, 
Tahir M Nisar
Tahir M Nisar
 and 
Guru Prakash Prabhakar
Guru Prakash Prabhakar
   | Dec 29, 2017
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Article Category: Research Article
Published Online: Dec 29, 2017
Page range: 147 - 161
DOI: https://doi.org/10.1515/ijm-2017-0016
Keywords
© 2017 Jiaju Yang et al.
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Figure 1

Spectrum of PPP options (Gidman et al., 1995). PPP = public–private partnership
Spectrum of PPP options (Gidman et al., 1995). PPP = public–private partnership

Figure 2

Relationship among BOT projects’ participants (Schaufelberger, 2005). BOT = build–operate–transfer
Relationship among BOT projects’ participants (Schaufelberger, 2005). BOT = build–operate–transfer

Figure 3

The framework for CSFs of BOT projects in China (Qiao et al., 2001). CSF = critical success factor; BOT = build–operate–transfer
The framework for CSFs of BOT projects in China (Qiao et al., 2001). CSF = critical success factor; BOT = build–operate–transfer

Refined CSF list

No.CSFsSource
CSF1Government support and guaranteeKanter (2010); Qiao et al. (2001); Stonehouse et al. (1996);Zhang et al. (1998)
CSF2Reasonable risk allocationGrant (1996); Qiao et al. (2001)
CSF3Picking up the good projectQiao et al. (2001)
CSF4Thorough and realistic cost-benefit assessmentBrodie (1995); Hambros (1999); Qiao et al. (2001)
CSF5Stable political situationQiao et al. (2001)
CSF6A favourable legal frameworkBoyfield (1992); Stein (1995); Tiong (1996)
CSF7A strong project consortiumBirnie (1999); Jefferies et al. (2002); Li et al. (2005); Tiong (1996)
CSF8Stable macroeconomic environmentQiao et al. (2001); Tiong (1996)
CSF9Project technical feasibilityQiao et al. (2001); Tiong (1996); Zantke and Mangels (1999)
CSF10Transparent and competitive procurement processGentry and Fernandez (1997); Jefferies et al. (2002);Li et al. (2005)
CSF11Sound economic policyTiong (1996)
CSF12A good contractorQiao et al. (2001)
CSF13Multi-benefit objectivesGrant (1996)
CSF14Good governanceBoyfield (1992); Stein (1995)
CSF15Social supportFrilet (1997)
CSF16Well-organised public agencyLi et al. (2005)
CSF17Shared authority between public and private sectorsKanter (2010); Stonehouse et al. (1996)
CSF18Condition of existing infrastructureTiong (1996)
CSF19Technology transferQiao et al. (2001)

Composition of sample by respondent’s role/area

Public sectorPrivate sector
Role/areaCountPercentageRole/AreaCountPercentage
Government of Sichuan Province412.5Contractor917.0
Government of Guangdong Province515.6Project manager1120.8
Development Planning Commission of Hebei Province39.4Supplier815.1
Development Planning Commission of Hunan Province26.3Financier59.4
Department of Water Resources of Sichuan Province618.8Operator815.1
Department of Construction of Guangxi Province515.6Adviser1222.6
Department of Foreign Trade and Economic Cooperation of Guangdong Province39.4Subtotal53100
Shenzhen Municipal Government412.5
Subtotal32100

Updated list of CSFs with top ten CSFs

No.CSFs and their associations
CSF1Reasonable risk allocation: risk
CSF2Government support and guarantee: risk
CSF3A strong project consortium: management
CSF4Picking up the good project: whole life
CSF5Transparent and competitive procurement process: management
CSF6Project technical feasibility: whole life
CSF7A good contractor: management
CSF8Thorough and realistic cost–benefit assessment: whole life
CSF9Economic factors: risk
CSF10Political and legal factors: risk

Composition of sample by sector

Project typeCountPercentage
Power and energy2630.6
Water and sanitary1821.2
School and education facilities2225.9
Transportation1922.4
Total85100.0

New list of CSFs after reliability test

No.CSFs and their associations
CSF1Government support and guarantee: risk
CSF2Reasonable risk allocation: risk
CSF3Picking up the good project: whole life
CSF4Thorough and realistic cost–benefit assessment: whole life
CSF5Stable political situation: risk
CSF6A favourable legal framework: risk
CSF7A strong project consortium: management
CSF8Stable macroeconomic environment: risk
CSF9Project technical feasibility: whole life
CSF10Transparent and competitive procurement process: management
CSF11Sound economic policy: risk
CSF12A good contractor: management
CSF13Multi-benefit objectives: whole life
CSF14Good governance: management
CSF15Social support: whole life
CSF16Well-organised public agency: management
CSF17Technology transfer: whole life

Reliability test results

Cronbach’s alpha reliability coefficient = 0.971
No.Corrected item: total correlationCronbach’s alpha if item deleted
CSF10.8790.969
CSF20.9090.968
CSF30.8980.968
CSF40.9060.968
CSF50.9180.968
CSF60.9250.967
CSF70.9520.967
CSF80.9340.967
CSF90.9270.967
CSF100.8060.969
CSF110.6470.971
CSF120.9120.967
CSF130.9130.967
CSF140.8890.968
CSF150.8590.968
CSF160.8020.969
CSF170.0540.977
CSF180.4190.973
CSF190.7820.969

Ranking of CSFs by RII

CSFsRIIRankRiskWhole lifeManagement
Reasonable risk allocation0.8311x
Government support and guarantee0.8062x
Picking up the good project0.7693x
A strong project consortium0.7006x
Project technical feasibility0.7564x
Transparent and competitive procurement process0.7315x
A good contractor0.6757x
Thorough and realistic cost–benefit assessment0.6259x
Stable political situation0.61311x
Stable macro-economic environment0.61910x
Sound economic policy0.6318x
A favourable legal framework0.53113x
Multi-benefit objectives0.51314x
Good governance0.54412x
Well-organised public agency0.51315x
Technology transfer0.50616x
Social support0.44417x
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