Research On The City Sewage BOT Expansion Project Financial Decision Of X Sewage Treatment Plant

Construction fund shortfall and inefficient management of the China's city sewage municipal engineering has become one of the urgent problems in the city water service industry.Since the 1990's,China has implemented city water service industrial production reform,including a lot of explorations in the market access,introduce competition and concession contract.Therefore,the BOT mode become a new pattern of financing models has been widely used.It has become a effictive way to reduce the pressure of capital and technology of city water resources construction.However,because of long payback periods and complex contractual relationgship,BOT project financing has enormous risks.Hence,private invectors' financing decisions determines the safety of the invested capital and the success of the project.This paper combs the research achievements of domestic and foreign scholars on the BOT financing model and the BOT financing decision evaluation.One the basis of the public goods theory,the project financing theory and the project finance risk management theory,also in the present domestic background of the current situation of urban sewage treatment facilities,paper analyzes the sewage municipal engineering of BOT project financing mode and financing decision process.Afterwards,through investigating the plant's financing decision plans of the phase I and phase II project in the BOT mode,and making a comparative analysis between the actual operation condition and the prospective earnings of the origina financing decision,paper find out the reason of the influence factor in the plant's prospective earnings.And analysing the original financing decision brought about some problems,such as high cost of capital,changes in inlet water quality and yield and irrational price adjustment formula.Based on this,considering the strategy aim of economic effectiveness,social benefit and environmental benefit,paper draw up a new financing decision plan of company's future expansion project.Based on the analysis and evaluation of the scheme's prospective returns,liquidity,profitability and instability,paper discuss the feasibility and economy of the proposed financing decision plan.Combining the plant's operational status,the paper analyzes the risks of the plan,and gives suggestions about establishing a perfect credit security system and strengthening the use of financial instruments.Finally,this paper give sugestions of establish and perfect the legal system of public and private partnerships,widen and develop financing channels,and establish and develop professional institutions and personal contruction.The innovation of the article is starting with the company's original financing decision,and based on the current stage of the franchise,the paper made a protocol of BOT expanding project financing decision scheme for the enterprise,and analyzed the financing funds efficiency and risk of financing decision scheme.