The construction of sponge city (SC) public private partnership (PPP) projects is considered to be a feasible measure to solve the "water problems" in China. To ensure the success of SC PPP projects, how to select an appropriate operation mode for SC PPP projects is an urgent problem to be solved. In this paper, first, the evaluation index system of operation mode is established from the aspects of project characteristics, government capabilities, project benefits, project implementation, and cooperative partnership. Second, the DEMATEL method and entropy method are introduced to overcome the drawbacks of a single method, and the combination weights are calculated by game theory. Finally, the decision-making model based on intuitionistic fuzzy soft set (IFSS)-prospect theory and VIKOR approach is constructed to select operation mode for SC PPP projects. In this paper, the framework is applied to select an operation mode for the Qingshan demonstration zone project, and its feasibility and effectiveness are verified through sensitivity analysis and comparative analysis. The results show that BOT is the optimal operation mode for SC PPP projects, and government capabilities and project implementation are critical factors to be considered when selecting an operation mode. This study can provide guidance to the government in the OMS of SC PPP projects and improve the sustainability of the projects. [ABSTRACT FROM AUTHOR]