The Paradox of Value for Money Assessment of PPP Project

摘要

In this paper, we analyze the paradox in the application of quantitative evaluation of value for money (VFM) which based on practical case. It is easy to use PPP model to analyze the VFM model, but it is difficult to attract social capital investment when the quasi-operational projects rarely implemented by government. To attract social capital, the government compensation should consider social capital, which may result in government spending in PPP mode is greater than the traditional procurement model of government expenditure, which makes the VFM metric is less than zero, so that the PPP mode project cannot be implemented. For the above paradox, the government should considering the social benefits, and earnestly fulfill the responsibilities of the government, using the method of comprehensive evaluation, and pay attention to qualitative evaluation to decide whether the PPP project is feasible when we proposed application of the PPP model.