Research Of Financing Risk Management Of BOT Project Of Sewage Disposal Plant In LJ County

With the continuous development of China's economy,the problems caused by urbanization have gradually become prominent,specially the environmental pollution.Protecting the environment has always been a basic national policy of China.For China where water resources are scarce,strengthening water pollution prevention and protection and ensuring national water security are more important tasks related to the national economy and the people's livelihood.According to the plan in the Action Plan for Water Pollution Prevention and Control,by 2020,national water environment quality should get deliverable phase by phase,by 2030,efforts should be made to improve the overall quality of the water environment and functions of the aquatic ecosystem should be restored.Accelerating the construction of urban sewage treatment facilities to improve the water environment has become a common task of the government and the people.In China,as a part of public infrastructure,the investment of sewage treatment mainly depends on the government.The management and operation of sewage treatment are also directly operated by the government.On the one hand,this situation leads to a single source of funds,and the project funds are seriously insufficient.On the other hand,the government and enterprises are not divided in the process of operation and management,which makes the enterprises lack vitality and leads to a low investment efficiency.The BOT(Build-Operate-Transfer)model,as a financing model that utilizes social capital and government-enterprise cooperation to build infrastructure projects,brings a turning point to the immediate predicament.It not only solves the problem of construction funding gap,but also improves the construction efficiency and project efficiency under the influence of the marketization and professional management of private enterprises.However,the sewage treatment project itself has a long life cycle,a large investment scale,and many uncertain factors.In addition,many participants in the BOT model have complicated financing structure and increased risk of the project.In order to ensure the success of the project operation and better exert its social and economic benefits,the research on financing risk management under the BOT model has become one of the most important issues at present.Based on the theoretical research,this paper has carried out a specific financing risk management research for the BOT project of wastewater treatment plant in LJ county.This paper is divided into six chapters:The first chapter introduces the research background and significance of the article,combs domestic and foreign research literature,and clarifies the research ideas and research methods of the article.The second chapter mainly introduces the concept and theoretical basis related to BOT model and financing risk management.The third chapter introduces the BOT project of wastewater treatment plant in LJ county,analyzes the construction background of the project,and introduces the basic situation of the project and its specific financing operation mode.The fourth chapter is about identification and evaluation of financing risk of the BOT project of wastewater treatment plant in LJ county.This chapter firstly uses the brainstorming method to identify the possible financing risks of the project,then qualitatively and quantitatively analyzes the project financing risks through risk matrix method and sensitivity analysis method.The assessment confirmed the significant financing risks and general financing risks of the BOT project of wastewater treatment plant in LJ county.The fifth chapter focuses on financing risk handling suggestions of the BOT project of wastewater treatment plant in LJ county.This chapter gives specific risk management suggestions based on the risk identification and assessment results.The sixth chapter is conclusions and prospects.The study found that the financing risks faced by the BOT project of wastewater treatment plant in LJ county are diverse,including completion delay risk,influent water quality risk,government payment risk,and inflation risk,force majeure risk,etc.Among them,construction cost overrun risk and insufficient income risk are major risk factors that need special attention.In order to successfully achieve the project objectives,this paper proposes policy recommendations for dealing with major financing risks and general financing risk factors.The research in this paper theoretically enriches the research of financing risk management theory in BOT application.In practice,it puts forward specific risk treatment suggestions,which has certain reference significance for financing risk management of BOT projects in wastewater treatment industry.