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. 2023 Sep 1;9(9):e19727. doi: 10.1016/j.heliyon.2023.e19727

Table 1.

Preliminary factors that affect the private sector's willingness to participate in rural water supply.

No. Factor Description Reference
1 Tax incentive policies Tax incentives include tax rates, corporate income tax, and tax reductions for imported equipment. [43]
2 Land incentive policies Enterprises are given preferential treatment by the state for land allocation to implement project contracts. [47]
3 Policies to support access to preferential loans and credit The state's support for accessing loans and concessional credit. [48,49]
4 Dedicated PPP unit to support and promote rural water supply programs In addition to an advisory role, the unit also has a clear and specific mandate and is afforded certain rights. [48,50]
5 Policies to support the transfer and application of science and technology Purchase technology copyright, technology, technology research, and development results; conduct scientific research or pilot production projects. [51]
6 Training support policies to improve capacity management and operation Support policies to improve project management and operation ability for technical cadres. [51]
7 Mechanism to adjust water price Mechanism to appropriately adjust water prices to ensure a return on equity. [52]
8 Administrative procedures Such procedures are expressed through the project proposal order and procedures, investor selection, transparency of projects. [51]
9 State capital contribution The government capital contribution rate affects private investors' willingness to participate. [53]
10 State risk-sharing mechanism The private partner receives a share of the risk that is differentiated from a fully private investment. [53]
11 Experience in participating in PPP projects Experience in implementing PPP projects positively affects private enterprises' willingness to participate in PPP projects. [52]
12 Experience in participating in rural water supply projects Experience helps enterprises better control profit and risk. [37,52]
13 Finance of the enterprise Enterprises with abundant finance and higher profits tend to be interested and participate in PPP projects. [37]
14 Community support The community's willingness to assist in land acquisition, use the service, and pay service fees. [52]
15 The community's high demand for clean water High demand indicates potential high consumption, which suggests that the project will obtain higher profit and quickly recover capital. [11]
16 Water price stability Water prices that are too high or fluctuate often will affect service users' capacities, rendering many people unable to pay for water services. [38,45]
17 Economic characteristics of the locale Economic characteristics affect service users' ability to pay for services. [37]
18 Population in the surrounding areas The population distribution and density affect private investors' willingness. [37]
19 Local cultural features In many locales, people still maintain the habit of using drilled wells, dug wells, and other unregulated forms, which affects the consumption of clean water when the project is in operation. [37]
20 Media support and supervision Media support and supervision will also affect private investors' willingness to participate in PPP projects. [44]
21 A well-designed contract A well-designed PPP project will benefit the State, private sector, and service users. [54,55]
22 Profit of the project The profitability of the project is considered to be the most significant factor for the state and the private investors. [56]
23 The complexity of the project Related to the financial, technical, and management aspects of PPP projects. [37]
24 Quality of the works Investors consider a variety of related issues, such as the condition of the facilities (through technical management records), the quality of existing staff, and the fit of the staff layout. [56]
25 Availability of the project's water sources An abundant supply meets service users' increased demand for clean water and does not disrupt the demand for water. [57]
26 Input water quality A good quality water source reduces the costs of water treatment and operation. [57]