Study On Waterworks Securitization In Shiyang River Basin

The ecological and environmental problems of Shiyang River Basin are very serious. The treatment project involves many aspects, such as water reform, water supply, sewage treatment and water protection. Currently the local water infrastructure can not meet demand and post-construction still requires a lot of capital investment. It is difficult to achieve by relying on government investment. It is very urgent to explore a new mode of financing because of the limitations of traditional financing. Asset securitization provides a new way to solve the present financial puzzledom of the local water construction and broadens the financing channels.Firstly, this paper describes the basic principles and operational processes of asset securitization and analyzes the status of water infrastructure and financing difficulties in Shiyang River Basin. This paper proposes the feasible mode of operation on waterworks securitization, learning research results and practical experience from home and abroad and combined with the specific circumstances of Shiyang River Basin.This article is divided into five parts:First, this article describes in detail the basic regime and the status of the waterworks and financing in Shiyang River Basin. The lack of funds and financing channels is the biggest obstacle for water infrastructure by in-depth analysis of the problems. It is very urgent to explore a new mode of financing. The second part concentrates systematically the basic principles and operational processes of asset securitization for the specific operation to provide a theoretical basis. The third part discusses the feasibility and necessity of waterworks securitization in Shiyang River Basin by analyzing the condition and environment of asset securitization. The fourth part explore the possible mode of operation by design and selection of the key aspects which including the underlying assets, the transaction structure, SPV and credit enhancement. The last part analyzes the obstacles of the application on waterworks securitization and puts forward some policy recommendations.