| There is an big opportunity in Chinese water industry now. But because of the traditional monopoly and level of marketability, its financing structure is not balance and project execution is low efficiency.Financial leasing is a new financing model in Chinese water industry. Its purpose is to solve the problem of fund shortage of lessee,and its central point is to realize the purpose of financing in the form of financial property. The water project investment has characteristics of relatively long-term and stable investment return which are very good condition to apply to financial leasing, so financial leasing is a new and effectual financing model in Chinese water industry.Under the trend of Water Industrial integration,because of current situation of shortage of government fund, Public-private partnerships of water industry must develop quickly. But the most of private parts of the PPP of water industry in our country are small or middle enterprises which don’t have ability to operate big projects. By finance lease these enterprises can become more competitive and realize multicultural business. At mean time under the trend of Water Industrial integration these enterprises can develop the advantage of economies of scale and economies of scope.This paper has five part: The first part introduce the principle and status,including the summary of water industry, theories of financial leasing and the development of PPP water project in our country; The second part is the analysis of financing problem existing in PPP water financing;The third part elaborates the necessity and feasibility of applying financial leasing to the PPP water project; The forth part introduces the foreign financial experience;The fifth part gives the proposals which promote PPP water financing in our country by using finance lease. |
