The Case Study On The Securitization Of PPP Projects In Gu'an Park

In recent years,with the advancement of China's urbanization process,China continuously has introduced PPP projects.However,the PPP projects face some growing problems with bigger financing demand,insufficient liquidity,lack of reasonable exit mechanism.The key to the implementation of PPP projects is to solve the financing problem.Simply by continuing to rely on the traditional financing methods of government financial resources,it has become increasingly difficult to meet the financing needs of China's current public infrastructure construction.In order to broaden the financing channels of PPP projects,the innovation mode of PPP project asset securitization has been used in China to meet the financing needs of public infrastructure.However,in the process of PPP project asset securitization,we need to pay attention to some problems and what needs to be further improved?Therefore,this paper selects the typical cases of PPP project assets securitization,named as “China Fortune Land Development Gu‘an Industrial Park new urbanization PPP project revenue right of heating charge asset support special plan”.Case analysis and comparative analysis are used.In the case of product structure,the underlying asset pools and the cash flow forecast,product cost and benefit,credit enhancement measures and potential risk of these aspects to conduct a comprehensive in-depth analysis.It will give readers a clearer and more comprehensive understanding of the securitized products.Study found that can be drawn lessons from the case.There are many special plans experience.The key factors for the success of securitization of PPP project in Gu'an park are the basis of high quality assets,reasonable product structure and expected return,rich enhancement measures and effective risk slow-release measures.There are also some problems like single underlying asset,high concentration of risk,the product liquidity risk and unrealized in the true sense of “true sale” and “bankruptcy isolation”and so on.At the same time,according to the problems reflected in the cases,this paper proposes that the laws and regulations related to the PPP securitization should be improved as soon as possible and we need to expand the range of basic assets,relax restrictions,improve the trading market,and establish the legal subject status of the SPV.It has better introduced strategic investors for the construction of urban heating facilities.Thus it provides long-term stable financial support for the construction of urban heating facilities in our country.It provide new ideas and references andinspirations for other scholars in the theoretical research on the securitization of urban heating facilities.