presented concrete public-private partnership proposals in the field of public works.
Currently, China has the world’s largest PPP market and is known for its large
number of state-owned enterprises, including local government-related projects such
as sewage treatment, flooding, waste disposal, and infrastructure maintenance, as
well as public services. Much attention is focused on waste treatment businesses in
rural areas, which lack funds, experience delays in the application of related technologies, and lack human resources. PPP is one way to solve these problems.
Developed countries have already introduced the PPP model to the practice of
rural environmental governance, such as in agricultural ecosystem management
and rural environmental services. In Japan, third-party companies are entrusted
with the construction, operation, and maintenance of sewage facilities.
As shown in Fig. 18.5, the new PPP pilot project of Pujiang waste disposal, which
started in 2014, is a management contract in which ownership is held by the
government, but private companies are responsible for the operation, protection,
and customer service of public facilities under a 3-year contract. In the budget set by
the Pujiang Prefecture Government for waste disposal, the amount contracted with
the enterprise is paid in advance, and the entrusted enterprise manages and operates
waste disposal appropriately (collection, transportation of household waste) within
the funds paid. Any expenses saved by the company can be retained as profits. In
order to ensure reliability, companies are proposing data reporting and management
of waste collection processing systems, as well as new policies on waste disposal and
the use of related technologies. The advantages of the new PPP model for waste
disposal in Pujiang County include improvements in management, such as curbing
fiscal spending and using technology related to waste disposal by private companies
maintaining management and operation. As a private company, the procedure is less
complicated than that of traditional PPP model businesses in China; the procedure to
become involved is easy. Start-up companies who may have insufficient funds to
launch themselves often have new ideas and new technologies. Business opportunities can be provided, and efficiency can be improved through management by
private companies. For residents, it is possible to secure high-quality public services
through monitoring, with the expectation of information disclosure by the private
companies.
With implementation of the new PPP model, government funds can be used more
efficiently, related technology can be introduced, and the quality of public services in
rural waste disposal can be improved through the reduction of waste disposal costs to
the Pujiang government and the use of private technology. However, the government
still has a heavy financial burden, and there are disadvantages, such as increasing the
workload of party members by instructing residents to separate waste and the
requirement for frequent renewal of short-term (3-year) contracts. Moreover, there
are a limited number of private companies that can respond to these requirements,
and policies introduced to improve people’s awareness of waste problems take
considerable time to have an effect, whereas companies need to solve problems
and demonstrate their managerial skills over a short period of time. By changing its
role from an existing implementer to a supervisor and service buyer, the government
may weaken its role of guidance and management in dealing with waste.
18 Building a Recycling-Oriented Society Through Collaboration Between Urban and. . . 335
Currently, China has the world’s largest PPP market and is known for its large
number of state-owned enterprises, including local government-related projects such
as sewage treatment, flooding, waste disposal, and infrastructure maintenance, as
well as public services. Much attention is focused on waste treatment businesses in
rural areas, which lack funds, experience delays in the application of related technologies, and lack human resources. PPP is one way to solve these problems.
Developed countries have already introduced the PPP model to the practice of
rural environmental governance, such as in agricultural ecosystem management
and rural environmental services. In Japan, third-party companies are entrusted
with the construction, operation, and maintenance of sewage facilities.
As shown in Fig. 18.5, the new PPP pilot project of Pujiang waste disposal, which
started in 2014, is a management contract in which ownership is held by the
government, but private companies are responsible for the operation, protection,
and customer service of public facilities under a 3-year contract. In the budget set by
the Pujiang Prefecture Government for waste disposal, the amount contracted with
the enterprise is paid in advance, and the entrusted enterprise manages and operates
waste disposal appropriately (collection, transportation of household waste) within
the funds paid. Any expenses saved by the company can be retained as profits. In
order to ensure reliability, companies are proposing data reporting and management
of waste collection processing systems, as well as new policies on waste disposal and
the use of related technologies. The advantages of the new PPP model for waste
disposal in Pujiang County include improvements in management, such as curbing
fiscal spending and using technology related to waste disposal by private companies
maintaining management and operation. As a private company, the procedure is less
complicated than that of traditional PPP model businesses in China; the procedure to
become involved is easy. Start-up companies who may have insufficient funds to
launch themselves often have new ideas and new technologies. Business opportunities can be provided, and efficiency can be improved through management by
private companies. For residents, it is possible to secure high-quality public services
through monitoring, with the expectation of information disclosure by the private
companies.
With implementation of the new PPP model, government funds can be used more
efficiently, related technology can be introduced, and the quality of public services in
rural waste disposal can be improved through the reduction of waste disposal costs to
the Pujiang government and the use of private technology. However, the government
still has a heavy financial burden, and there are disadvantages, such as increasing the
workload of party members by instructing residents to separate waste and the
requirement for frequent renewal of short-term (3-year) contracts. Moreover, there
are a limited number of private companies that can respond to these requirements,
and policies introduced to improve people’s awareness of waste problems take
considerable time to have an effect, whereas companies need to solve problems
and demonstrate their managerial skills over a short period of time. By changing its
role from an existing implementer to a supervisor and service buyer, the government
may weaken its role of guidance and management in dealing with waste.
18 Building a Recycling-Oriented Society Through Collaboration Between Urban and. . . 335