Identifying Critical Bankability Criteria for PPP Projects: The Case of China

Table 1

Identified bankability criteria for PPP projects.

S/N	Bankability criterion	References
		1	2	3	4	5	6	7	8	9	10
D1	Economic and political environment
D1.1	Economic environment		√	√							√
D1.2	Competition condition				√						√
D1.3	Financial market									√
D1.4	Political environment			√
D1.5	Public opinion						√
D1.6	Tax policies			√
D1.7	Currency issues			√					√
D2	Legal and regulatory environment
D2.1	Legal system			√	√			√
D2.2	Regulatory framework			√
D2.3	Enforceability			√	√
D2.4	Nationalization and expropriation			√				√
D2.5	Procurement process								√
D2.6	Intervention right			√
D3	Project specificity
D3.1	Project definition		√	√			√
D3.2	Feasibility studies		√	√
D3.3	Capacity of the technology			√	√
D3.4	Site acquisition and access			√
D3.5	License, permits, and authorizations		√	√				√
D3.6	Infrastructure issues			√
D3.7	Environmental standards		√	√			√
D3.8	Labor force			√
D3.9	Size of the project		√	√			√
D4	Project financial structure
D4.1	Shareholders’ credibility	√		√	√	√			√		√
D4.2	Public sector’s reliability				√			√
D4.3	EPC contractor’s credibility				√
D4.4	Financial structure		√	√		√			√		√
D4.5	Financial flexibility		√	√		√					√
D5	Third party risk allocation
D5.1	Insurance arrangement			√		√				√	√
D5.2	Environmental and other legal/regulatory issues			√
D6	Contract arrangement
D6.1	Concession agreement			√		√					√
D6.2	Concession period			√		√
D6.3	Support agreement/guarantee					√			√		√
D6.4	Termination provisions			√
D6.5	Construction contract		√	√							√
D6.6	Operation and maintenance agreement		√	√							√
D6.7	Offtake purchase agreement			√							√
D6.8	Input supplier agreement			√							√
D6.9	Guarantee from multilateral investment agency				√			√		√
D6.10	Direct agreement				√
D6.11	Catastrophic risk			√				√
D6.12	Arbitration						√

References: (1) Lopes and Teixeira Caetano [28]; (2) Laishram and Kalidindi [29]; (3) Delmon [8]; (4) Gatti [30]; (5) Zhang [23]; (6) Davis [31]; (7) Wang et al: [32]; (8) Wang et al: [19]; (9) Regan et al: [11]; (10) Zhang [33].