TOT Financing Mode Research Projects And Hydropower Projects

Hydropower resources in China’s major river, are almost entirely developed by the large state-owned company implementing a rolling cascade development, needing too much money. However, problems such as single hydropower industry financing structure, financing channels, not open hydropower investment market, as well as a sound investment and financing policies, hindered the rapid development of water conservancy and hydropower construction to some extent. Other areas of successful experience has shown that the TOT mode can effectively attract private capital to enter the field of infrastructure, which not only provide a temporary relief for the collection of huge amount of investment, while greatly reduce the construction stage funding risks.This paper introduced the TOT project finance theory into hydropower construction industry, establishing a new model of the hydropower investment and financing in order to encourage private capital to enter the field of water conservancy and hydropower resources development. Based on related financing theory, analyzed the characteristics of TOT project financing and operational procedures, discussed the contents of the concession period and determining methods, asset valuation and so on; using quasi-public goods and item discrimination theory combined with the liquidity characteristics of hydropower projects, studied China policy and regulatory environment and economic system, confirmed the feasibility and advantages of hydropower projects using the TOT project financing mode.The value of managerial authority is the core issue of the TOT project financing and hydropower projects. The paper first analyzed assets attributes of Hydropower Engineering managerial authority, and compared existing major asset valuation method,proposed method combined replacement cost and the present value method, obtained a new quantitative method to assess the value of Hydropower Engineering managerial authority; studied identified various key parameters, and demonstrate this approach with a case-by-case quantitative calculation steps. Any Kind of new mechanisms in the trial process may-fallaey. Problem tree-and the list of issues, predicted hydropower engineering problems that may arise in the implementation of the TOT project financing process, proposed principle response measures on the main issues.In addition to being able to effectively address the source of funding, introduced TOT project financing in the construction of water conservancy and hydropower also has more far-reaching significance. This process will gradually shift the thinking of state-owned enterprises and government decision-makers, will keep a close eye "incremental investment " to concern " stock revitalize; other business entities in Hydropower Construction is clearly conducive to brainstorming, followed by a variety of innovative management skills will promote the progress and development of the whole industry.