Research On The Financing Risk Management Of Private Enterprises To Participate In Sewage Treatment PPP

With the development of economy,China's industrial,agricultural and domestic water pollution discharge load is far greater than the environmental capacity.In addition,due to industrial layout and other reasons,the problem of water pollution is becoming more and more serious,and unexpected water environmental pollution events are frequent.In order to solve these problems effectively and complete the"Ten Water" targets,a total of 4-5 trillion funds should be invested by 2020.These huge investments will undoubtedly increase the fiscal expenditure and brings great pressure to the local government funds,so it is necessary to attract social capital into sewage treatment industry.The state has issued a series of policies to support the application of the PPP in the field of sewage treatment,from 2015's Water Pollution Control Action Plan which encourage social capital investment in the water pollution control,to 2016's Suggestions Concerning Further Encourage and Guide Private Capital Investment in the Urban Water Supply,Gas,Heating,Sewage and Garbage Disposal Industries which provide support for private capital to participate in sewage treatment from the policy,and then to 2017's The Notice about Full Implementation of PPP in the Sewage and Garbage Disposal Project with Government Involvement which mandates the use of PPP in all new sewage treatment projects,so these policies advance the flourishing development of PPP in the field of sewage treatment step by step.Under the background of fact that the nation promotes the PPP,the relevant private enterprises also actively participate,and hope to obtain appropriate returns on the investment.And the success of PPP sewage treatment projects can not be separated from the effective support of funds,private enterprises should have a deep understanding of the financing risk of project when they participate.Therefore,we explore the financing risk of the PPP sewage treatment projects from the perspective of private enterprises.Firstly,based on a review of the connotation,application object,project financing and risk management of PPP,we analyze and summarize the application of PPP in the field of sewage treatment and the financing method and characteristics of private enterprises participating in PPP sewage treatment projects.Then,we theoretically analyze and summarize the identification,assessment and management of the project financing risk according to the characteristics of private enterprises participating in the PPP sewage treatment project.Finally,we unifies the S enterprise participating in the PPP sewage treatment project,analyze the use of credit loans,policy loans,equity financing,debt financing and other financing methods,evaluate the related financing risk through using the risk matrix method,summarize the S enterprise using the bank credit,bonds,the introduction of strategic investors,the formation of the enterprise consortium,asset backed securitization,initiating the establishment of the bank and other means to manage the financing risk,and put forward improving suggestions for strengthening fund management and setting up the warning line of accounts receivable,according to its two shortcomings such as the lack of project capital and the aggravation of accounts receivable.