Comprehensive Objectives for PPP Projects: Case of Beijing Olympic Stadium
This paper is concerned with issues relating to the need for clear and comprehensive objectives by parties toPublic- Private Partnership Projects: the case of Beijing Olympic Stadium, which is the first Public–PrivatePartnership project (PPPs) sporting complex in china. The discussion is illustrated by reference to the numerousrisks encountered throughout the development and construction of the project and also revealing theconcessional agreement that lead to the use of public private partnerships in building the 2008 Beijing OlympicStadium. The paper begins by discussing the definition of PPP, nature, development, competitive bidding, totalinvestment and sharing formula of the project partners, structure, operation process of the Beijing OlympicStadium (Bird’s Nest), the disagreement between the Project Company and Beijing Municipal Government(BMG) and also elucidate the three major disputes associated with the project and then give an overview of thedisputes resolution process in China.This case study also highlighted the intricacies seen, both in the implication of cancelling the retractable roofand the critical lessons learnt from the PPP project, as regards to the 2008 Beijing Olympic Stadium. However,even with all the numerous disputes, risks , negotiation and re-negotiation, the project was completed within thestipulated period with a touch of unimaginable structural design at a reasonable cost, which happens to go a longway in assisting the successful hosting of the 2008 Beijing Olympic Games.The recommendation and lessons learnt from this case study includes that government support and commitmentare very vital for any unique project especially in innovative and complex design structure such as the BeijingNational Stadium (Bird’s Nest). Hence, during the signing of the preliminary agreement any project, awell-defined project scope must be visibly stated, formulated and clearly defined prior before signing theagreement. That the sharing of comprehensive common project aims and objectives must be the ultimate priorityof all stakeholders associated in the venture. And also the importance of engaging in a proper and effective riskmanagement strategy because private and public sector interests must work together at all times, for successfulcompletion of the project such as hosting the 2008 Beijing Olympic Games.