The Design Of Asset Securitization Scheme For PPP Project Of Sewage Treatment In Chizhou City,Anhui Province

As China’s urbanization process further accelerated,the demand for investment in social public infrastructure is also increasing,resulting in an increase in local government fiscal expenditure.Since the PPP model can effectively solve the problem of government fiscal expenditure,in recent years the state has introduced policies to encourage the development of the PPP model,and local governments have actively promoted the PPP model in infrastructure construction.However,the public infrastructure projects constructed through the PPP model generally have the characteristics of long contract period,large investment scale and long payback period,which makes the social capital party’s enthusiasm for participating in the PPP project not high.Therefore,an effective and sound exit mechanism for social capital parties is established,thus actively guiding social capital parties to invest in PPP projects,which will play a good role in the development of China’s PPP model in the future.This paper firstly reviews the development characteristics of PPP mode and asset securitization at home and abroad,and analyzes the development process of China’s current PPP model asset securitization and the experience of the first batch of PPP asset securitization products.Select the wastewater treatment PPP project in Chizhou City,Anhui Province for the design of various aspects of asset securitization,including the description of the basic situation of the sewage treatment PPP project in Chizhou City,analyzing the feasibility and necessity of asset securitization,and constructing the pool of underlying assets for asset securitization.Through the analysis of the sewage treatment service cost and the sewage treatment service income data,predicting the cash inflow of the sewage treatment PPP project in Chizhou,Anhui Province in the next five years.Select the appropriate SPV for the asset supportplan,use the combination of internal and external upgrades to carry out a credit rating on the asset support plan,measure the product repayment plan for the designed securitized product,and the financing cost in the asset securitization process.It can be seen that asset securitization can effectively reduce the financing cost of the project.At the end of the paper,the risk mitigation measures such as cash flow closure operation and excess spread account set for the risks of product flow forecast deviation,capital mixing and bankruptcy isolation.After analyzing the market environment of the products to be listed and circulated in the future,we can know that the designed products will have less risk of repayment in the future in the capital market,and the yield is higher than similar products,which has certain market competitiveness.This paper combines asset securitization with PPP model,applies key aspects of asset securitization to PPP projects,designs asset securitization schemes for PPP projects,and obtains final PPP asset securitization products,which not only reduces the financing cost of PPP projects,but also facilitates the effective exit of social capital in China’s PPP projects,and provides reference for PPP projects in China’s future asset securitization.