PPP Financing Model In Wang Xiaoying Wastewater Treatment Project Applied Research

It is water that is the source of our life.However,with the development of economy in China,water pollution is becoming more and more serious.And the sewage discharge is increasing,along with the demand for sewage treatment projects.“The Action Plan for Prevention and Treatment of Water Pollution” issued by the State Council shows the country’s determination to tackle water pollution.However,the traditional financing model not only failed to promote the sound and rapid development of the sewage treatment industry,but also brought huge financial pressure to local governments.In recent years,the State Ministry of Finance,the National Development and Reform Commission and other departments have issued many documents to encourage the application of the PPP financing mode to the sewage treatment in China with the joint efforts of government departments and social capital.Local governments have been carrying out PPP projects in full swing.Currently,there are already 32 demonstration PPP projects.The use of the PPP financing mode to attract social capital into the sewage treatment industry not only satisfies the need for wastewater treatment and effectively relieves local government financial pressure,but meets the private sector’s demand for profitability,which ultimately meet the goals of both parties and also provide high-quality sewage treatment services.This article adopts literature review,case analysis and other research methods to present the circumscription,feature,systematic of PPP mode and its development history in China.Then,the characteristics and problems of the current development of China’s sewage treatment industry are analyzed.It is believed that the adoption of the new financing mode——PPP mode is necessary.Although the PPP financing mode has been developed in China for some time,domestic scholars have systematical little research on the field of wastewater treatment.In addition,most of the sewage treatment PPP projects are still under construction or in the early stage of operation.Therefore,the successful operation example——PPP project of Wang Xiaoying sewage treatment plant is selected as a case in this paper,which launches a detailed study of its PPP financing mode.After fully summarizing the operational structure and process of the project’s PPP financing model,it first analyzed the risks it faced during the PPP financing process and the measures taken by PPP financing participants to deal with the risks.After applying the PPP financing model,While analyzing the effect of the PPP financing model on Wang Xiaoying’s wastewater treatment project itself,investors,and government,compared the other wastewater treatment PPP projects,analyzed the advantages of Wang Xiaoying’s PPP financing for sewage treatment projects,and obtained some case studies.The revelation can provide reference for the future application of PPP financing model for sewage treatment projects.In the sewage treatment industry,continuing to promote the PPP financing model must be combined with actual lessons learned from failures,learn from successful experiences,continue to explore,develop,innovate,and improve the financing model to help the healthy development of the sewage treatment industry.The author hopes that there will be more successful PPP financing modes in the wastewater treatment field to improve the quantity and quality of sewage treatment services,speed up the solution to water pollution,improve the living environment,and achieve social and economic sustainable development for the benefit of future generations.