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

Table 4

Relative importance weights of the twenty criteria from the banks’ perspective.

Bankability criterion	Ranking	Importance weight (%)	Subtotal (%)
Political environment (D1.4)	1	6.94	18.85
Economic environment (D1.1)	2	6.49
Financial market (D1.3)	4	5.42
Legal system (D2.1)	5	4.95	16.84
Regulatory framework (D2.2)	8	3.74
Enforceability (D2.3)	11	2.92
Intervention right (D2.6)	13	2.63
Nationalization and expropriation (D2.4)	14	2.60
License, permits, and authorizations (D3.5)	18	2.36
Shareholders’ credibility (D4.1)	3	5.60	20.82
Public sector’s reliability (D4.2)	6	4.59
Financial structure (D4.4)	7	3.77
EPC contractor’s credibility (D4.3)	9	3.52
Financial flexibility (D4.5)	10	3.34
Insurance arrangement (D5.1)	12	2.81	5.40
Environmental and legal issues (D5.2)	15	2.59
Concession agreement (D6.1)	16	2.56	9.42
Support agreement/guarantee (D6.3)	17	2.46
Termination provisions (D6.4)	19	2.25
Concession period (D6.2)	20	2.15
		Total weight	71.33