Title: Study on investment return system of PPP wastewater treatment projects based on system dynamics

Authors: Tong Dai; Qinghua Wang; Xiaokun Sun; Bixiang Shi

Addresses: School of Economics and Management, North China Electric Power University, Beijing 102206, China ' Engineering Training Center, Inner Mongolia University of Technology, Hohhot, 010051, China ' School of Economics and Management, North China Electric Power University, Beijing 102206, China ' School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China

Abstract: This paper aims to study on investment return system of public-private partnership (PPP) wastewater treatment projects based on system dynamics. On the basis of the analysis of the factors influencing the value for money (VFM) evaluation and the prediction system of the rate of return on investment, a system dynamics method is used to establish a prediction model for investment income based on VFM quantitative evaluation. The software of Vensim PLE is used to simulate the newly built PPP wastewater treatment project. Results show that the selection of discount rate and PPP project's transaction cost have significant effect on the VFM and the present value and the rate of return on investment in the franchise period. This study can be used as a reference for the fair and equitable cooperation between the government and the private business.

Keywords: wastewater treatment projects; PPP; public-private partnership; VFM; value for money; investment income; system dynamics.

DOI: 10.1504/IJTPM.2020.109781

International Journal of Technology, Policy and Management, 2020 Vol.20 No.3, pp.193 - 213

Received: 31 Jul 2018
Accepted: 01 Jun 2019
Published online: 24 Sep 2020 *

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