Financing Strategies Of PPP Projects For Engineering Consultation Companies

In recent years,PPP(Public-Private-Partnership)concept has become popular due to the impetus of the government.It is defined as the cooperation between government capital and social capital,and is mainly used to optimize financing and implementation in the public infrastructure projects so as to achieve "win-win" situation for participants.Engineering consultation companies as one of the important participants in PPP projects have the financing advantages,such as global strategies about project management and good financial status,but they also have financing disadvantages of small scale and high debt sensitivity.With the continuous introduction of new supervision policies for PPP market by the national financial regulatory authorities in 2017,the market environment has undergone major changes.How to choose the PPP project financing model and investment direction that meet the characteristics of the engineering consultation company under the new normal supervision is an important issue for the practitioners.Based on the analysis of theoretical research results and a large number of cases,this paper first sorted out the domestic infrastructure investment and financing modes and main operating methods,elaborated the main application modes of PPP projects for mainstream financial institutions in the market from the perspective of financing institutions.Taking HW Company as an example,we then analyze the advantages and disadvantages of various different solutions,and propose processing advice according to the financing difficulties caused by the new normal supervision during the actual operations of the Y city's riverway management & development PPP Project.Finally,based on the characteristics of engineering consultation companies,this paper shows that a comprehensive consideration should be made from three aspects of the cash flow of the project itself,the preferred participation of compliance funds,and debt financing during the financing activities.In the direction of investment,it is recommended that the infrastructure areas including ports,highways,and municipal roads and bridges should be carefully invested;and the promising directions include such infrastructure areas as ecological environmental protection,healthy old-age care,and specialty towns.