Research On PPP Financing Scheme Of Shihezi Garbage Plant

With the rapid development of Shihezi’s economy and the accelerating process of urbanization, the construction of Shihezi’s infrastructure is facing huge financial demand.In the background of government vigorously promote PPP financing,Shihezi city government first in Shihezi garbage plant project using PPP financing mode, which in 2013 the PPP model for the design ideas and financing mode in Shihezi city garbage plant began put into trial operation. Therefore, this article will on Shihezi garbage plant PPP financing scheme based, mainly from Shihezi garbage plant PPP financing scheme, scheme implementation risk and two years of trial operation effect perspective on the financing scheme evaluation, on the basis of further put forward the countermeasures to guarantee financing efficiency suggested that in order to summarized the success or failure of Shihezi first case of PPP financing scheme for better development of PPP financing to provide a reference.The research results show that:(1) The program design of Shihezi garbage incineration plant of PPP financing projects is reasonable, in the project before, during and after all can better consider the interests of both the demands of cooperation, can ensure long-term normal operation. In the case of normal operation, the average rate of return is greater than the industry average profit rate, the internal rate of return is greater than the benchmark rate of return, rate of assets and liabilities within the affordable range, the financing of the project is feasible in financial field;(2)Shihezi garbage plant PPP main responsibility for financing projects clear. The main body of the division of labor is more reasonable, help the project smoothly; the financing structure is reasonable, reliable source of funds, project operation process will not interruption due to funding problems;servicing budget allocation plan is reasonable, be able to repay interest and guarantee loans; project pricing reasonable system. The charging mechanism needs to be further improved;(3)In the operation of project, in view of the Shihezi division of the special system in our country, two-child policy liberalization and unreasonable pricing mechanism exists in this scheme, financing scheme of Shihezi garbage plant PPP is faced with political risk, market risk and financial risk.which makes the project need to pay close attention to and control the risk in the specific application.In the light of the problems and risk for the project, this paper put forward specific countermeasures and suggestions.For example,strengthening the government guarantee, signing a purchase contract with government, developing reasonable and effective pricing strategy and charging mechanism, strengthening technical supervision, signeing a long-term supply contracts with energy suppliers, try to avoid due to the controllable risk leads to the loss of perspective, in order to guarantee Shihezi garbage plant PPP financing project operate smoothly.