Critical success factors for transfer-operate-transfer urban water supply projects in china

Xianhai Meng, Qi Zhao, Qiping Shen

Research output: Journal article publicationJournal articleAcademic researchpeer-review

69 Citations (Scopus)

Abstract

Over the years, build-operate-transfer (BOT) has continuously attracted research interests. Many studies on BOT have been carried out. Variations of BOT such as build-own-operate-transfer and build-own-operate have also been reported in some relevant publications. However, few investigations thus far have been conducted for transfer-operate-transfer (TOT). Therefore, there is a knowledge gap in this particular field. TOT is a new model that is suitable for existing infrastructure and public utility projects formerly funded by the governments and currently operated by state-owned enterprises. It refers to the transfer of a running public project to a foreign business or domestic private entity. Based on four case studies carried out in the Chinese water supply industry, this paper examines why there is an increasing need for TOT projects and identifies the distinctive features of TOT practice in China. This is followed by an introduction of a framework of critical success factors (CSFs) for TOT projects. The most important factors include project profitability, asset quality, fair risk allocation, competitive tendering, internal coordination within government, employment of professional advisors, corporate governance, and government supervision. The identification of CSFs provides a useful guidance to project parties planning to participate in TOT practice.
Original languageEnglish
Pages (from-to)243-251
Number of pages9
JournalJournal of Management in Engineering
Volume27
Issue number4
DOIs
Publication statusPublished - 1 Oct 2011

Keywords

  • China
  • Critical success factor
  • Transfer-operate-transfer
  • Water supply

ASJC Scopus subject areas

  • Industrial relations
  • Engineering(all)
  • Strategy and Management
  • Management Science and Operations Research

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