Abstract:
Chinese cities have embarked on a task to construct rail mass transit systems on an unprecedented scale. Little has been reported on how China’s municipalities have managed to secure funding for capital investment and operational subsidy, particularly concerning how private or overseas investors have become involved. Using Shenzhen as a case study, this paper reveals three elements that make public–private partnership work for China’s urban mass transit: (a) a deep knowledge of China’s formal and informal institutions, (b) a realignment of the goals and constraints for transit operation, and (c) a redesign of the mechanism for revenue stabilization.
