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] |