PPP (Public-Private Partnership) as an efficient risk transfer tool that has been commonly used within various developed countries such as the UK, France and Australia. Starting in the 1980s, China also began to apply PPP models in infrastructure. Until 2013, based on the foundation of “The Belt and Road Initiative”, the Chinese government prioritized infrastructure development. PPP then became popular in China, specifically when utilizing methods such as BOT (Build-Operate-Transfer). BOT does still encounter some governance related challenges due to a lack of experience, with attendant risks. Therefore, the aim of this research is to review the current issues in Chinese BOT governance based on the perspective of the Chinese government and to provide recommendations to enhance the BOT governance and reduce attendant risks such as efficiency loss, project delays and reduced public credit. The predominate observations display the main issues including legal challenges, involvement of state-owned capital and the overwhelming power of the local government in regards to project negotiations. The discussion of these issues is a vital process as transparency is an issue that is being improved in China since 2013. Finally, suggestions on how to overcome the issues are provided mainly from the perspective of government initiatives and policy making.
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