Study On The Concession Period Of PPP For Ecological Water Conservancy Project

Investment in the field of public infrastructure in China,in order to solve the problems of shortage of funds by government departments,public and private cooperation in the "franchise agreement" based on(PPP,Public Private Partnership)is a more effective way.In recent years,PPP has become a popular way for government departments and private investors to compete.In the course of PPP financing project,the concession period is one of the important parameters,its role is to divide time limit to achieve the government and the interests of investors,and through scientific concession period setting,to ensure the smooth development of the project.The concession period decision models,such as NPV or based on the game theory of concession period decision-making method,the biggest problem is that which brings to the project project management flexibility and the value of flexibility and not enough attention,the implied option value brought by the calculation value and actual value of different projects that leads to the actual value of the project is not accurately estimated.On the basis of previous research,the decision of concession period the ecological water conservancy project based on PPP,aiming at the traditional NPV concession period decision-making methods inappropriate,construction of concession period decision-making model of real options of the ecological water conservancy project based on PPP using the real option theory,which provides some reference for the ecological water conservancy project PPP smoothly.This paper describes the study of the concession period of PPP ecological water conservancy project background,purpose and significance,and through literature review of the research status at home and abroad on the concession period of PPP project,summarizes the current domestic and foreign research progress and shortcomings,and clearly this study possible innovation.Secondly,through the concept of the concession period of PPP project financing,project financing and PPP PPP ecological water conservancy project definition,expounding the basic theory of this study,the difference and comparison of French traditional evaluation method of real option.Again,summarized the main influencing factors of the ecological water conservancy project concession period PPP,further identify the types of realoptions may contain various influence factors,to construct and analyze NPV concession period based on the traditional model of concession period decision-making model based on option value.The PPP ecological water conservancy project as an example,the project risk identification,identify the real option of the project,and designs the concession period decision-making model,and solved the project concession period,considering the option value and option value of two is obtained under the conditions of the different concession period.The sensitivity analysis and guarantee the value of option,guaranteed the option value and the guarantee of ecological water conservancy to deal with the relationship between the amount of sewage,considering the value of government guarantee under the condition actually increases the real value of the project,making the project enterprises in a relatively short period of the concession to recover costs and obtain the expected benefits.In this paper,through the introduction of the real option theory,this paper provides a rich theoretical reference for the decision-making of the concession period of PPP project,and promotes the application and development of real option in the PPP project.