Research Of Investment And Finance Project For China Water Supply Industry

The water supply industry as the basis of national economic development, have great potential for development. China urban water sector in the market-oriented reforms of the government and enterprises constantly promote common exploration. Water is the natural monopoly industries. It is high capital-intensive, low-return investment . The low demand for a certain degree of flexibility on the public welfare, and other economic characteristics mean that the traditional ways of investment and financing seriously unsuitable as the obvious developments in the field of water services. Meanwhile, China's traditional administrative control of the water supply enterprises lacks vitality. The aging pipeline network, low efficiency, and investment entities single, make the water supply industry reform a must. Water industry market reform is driven by two motives. First is to attract funds, along with a rapid increase in urbanization huge demand for investment. The government forces alone can hardly satisfy the water industry's demand for operational efficiency and enhance services improving. So for the realization of the sustainable development of aquaculture. With the Industrial investment in China's water supply market as background, the introduction of the project financing investment in the water supply industry is not only the solution for the effective means of funding sources, but also improves the operating efficiency of the water supply industry. Project financing is a vote for the large-scale investment projects to raise funds for financial instruments. And compared to traditional financing methods, it has the fundamental characteristics of the "project-oriented" and "limited recourse'. Project financing establishs on the project's own cash flow basis, and bases on the project features to desgin a wide variety of credit guarantee structure. It will meet the diferent need of all participants in the project, so that some capital projects, which may not be able to obtain loans under the traiditional financing coidtions, to be developed.This paper is divided into five chapters. Chapter I analyze our main water supply industry market-oriented background, raised the request for carrying out the water industry investment and financing research projects.Chapter II starts from the definition of the meaning of water supply industries, analyze the special economic characteristics of the water supply industry as the supply of public goods industry. It has a quick describe to China's water supply industry and the development of a market-oriented reform, points out the market financing background behind the project of China water supply industry's finance investment,provides a theoretical baisis for the use of the investment and financing.Chapter III analyze the definition of investment and financing projects, and the use of the water supply industry. It analyzes and compares the various financing methods of the project,proposes the feasibility of ways of investment and fiancing in water supply industry with the economic characteristics of the water supply industry and the background of the market-oriented reforms. Industrial use of the water supply project and the investment and financing significance are also discussed to provide the theiretical basis for the strategy suggestions.Chapter IV mainly analyzes how to apply for project financing in water supply industry. First of all, it introduces the sturcture of project investiment and financing. Then it discribes how to design the structure of water industry investment and financing based on that theory: First of all,it analyzes the main body of investment projects of China water supply industry and its willingness of investing ; then it focuses on analysis and comparison of the BOT and TOT, ABS, three main means of financing projects in the water industry; final it simply analysis the financing of the project, as well as how to design the credit guarantee structure issues in water supply industry.Chapter V of this paper, is a summary of the water supply industry and the research project investment with its financing prospects.