PPP Model In China Sewage Treatment Industry

As urbanization process accelerates,the scale of sewage treatment rapidly grows.During the 13 th Five-year Plan,wastewater treatment industry is expected to reach 1.56 trillion yuan.However,current of municipal sewage treatment projects had been predominately invested and operated by government.Government is facing the great challenge to finance and maintain these infrastructures.In order to further grow the sewage treatment industry and to attract private capital to participate in infrastructure construction to overcome possible financial shortfalls,the government should promote PPP infrastructure projects in sewage treatment industry.Therefore,it is necessary to further examine the application of PPP project in sewage treatment industry.This paper analyzes the current landscape of China's sewage treatment industry,investment model and the application of PPP model in China's sewage treatment industry.Combining analysis of international PPP project's development,operation mode and financing mode,the paper will some inspiration on equity allocation mechanism,spirits of contract,government regulation,establishment of national PPP fund and financial tools innovation.In addition,combining the existing two sewage treatment projects using PPP model and analyzing of the advantages and disadvantages of different PPP models,this paper will provide some lessons learned from the past.In order to solve the problems in the application of PPP model in China's wastewater treatment industry,this paper puts forward some valuable suggestions,including preparation,standardizing the government regulation system,enhancing government credit and contract consciousness,perfecting laws and regulations,improving supporting reform and system construction;innovating financing channels standardize the bidding and tendering system and improve transparency of information disclosure.This paper can be used for China's sewage treatment industry PPP model to provide practical guidance to promote PPP model as well as to provide inspirations.