Project Financing For Coal And Power Pool Project And Its Risk Analysis

The coal and power pool is an effective approach to accelerate development of coal industry and power industry and improve their competitiveness. Because the coal and power pool project (CPPP) needs a mass of fund, other means of financing must be taken into account besides some traditional approach of financing. As an important branch of international finance, project financing has been applied successfully in many projects and will be good for getting fund to construct CPPP.This paper researches project financing for CPPP in detail. The content contain following five sections.Chapter 1: the summary of project financing for CPPP. This chapter mainly defines the coal and power pool and project financing, then discuss necessity of coal and power pool and necessity and feasibility of project financing for CPPP.Chapter 2: the structure and mode of project financing for CPPP. In the light of the trait of CPPP, this chapter introduces the structure and mode of project financing for CPPP.Chapter 3: the capital structure and source of project financing for CPPP. This chapter describes the source of equity capital and semi-equity capital and liability in detail.Chapter 4: risk in project financing for CPPP. The risk in project financing for CPPP is classified from different aspect and depicted particularly according to its attribute as resources project and infrastructure project.Chapter 5: the risk evaluation and risk decision-making for project financing. Based on the definition of entropy and the rule of maximum entropy and the theory of Bayes risk, the quantity of project financing for CPPP is estimated; Based on the method of three-dimensional entropy measurement of risk, the risk in different pattern which fulfill project's demand is evaluated; Based on theory of entropy weight and multi-object decision-making, different schemes of project financing for CPPP are arranged and selected; Based on game theory and entropy theory, the risk partaking in project financing for CPPP is researched.