Research On The Investment Decision-making Of A Water Supply PPP Project

With the development of society,the country gradually USES PPP,a new financing method,to introduce social funds into the field of water supply treatment.However,as such infrastructure projects represented by water supply PPP are public welfare projects,how to guide investors to safeguard the rights and interests of all parties through scientific decision-making? How to ensure that the project company can maintain a high level of enthusiasm into the actual project? It has become a problem to be concerned about in PPP water supply projects with low profit.The fundamental purpose of social capital participating in the PPP project of water supply plant is to obtain better input and output.However,due to the complexity,long-term nature and diversity of risk factors of PPP project,how to accurately analyze and judge the investment value of PPP project of water supply plant? How to prevent project risks? It becomes the focus of attention.From the perspective and standpoint of social capital,this paper focuses on the risk assessment and investment decision in PPP project of water supply treatment plant.The introduction of real option theory provides an analytical thinking and decision-making basis for PPP investment projects in water supply under the influence of multiple uncertain factors.In model building parts: analysis of the characteristics of the PPP project investment decision-making of water supply,summarizes the main factors that influence the water supply of the PPP project,clear the applicability of the real option theory in the evaluation of the PPP projects of water supply water supply projects and further identify the possible types of real options,constructed on the basis of the common sense of the PPP projects of water supply decision-making model based on real options.In the specific case analysis process: first of all,through the in-depth study of relevant materials and analysis of the case,in which the use of qualitative research methods,the project to make a detailed risk identification and assessment;Secondly,based on the characteristics and risk factors of the project,the author defines the four types of options owned by investors in the project,namely,delayed option,guaranteed option,expansion option and abandonment option.Thirdly,on the basis of multiple parameter assumptions,the cash flow statement is made and the value of the project is calculated by combining the real option.Finally,combined with the analysis results of the above evaluation examples,specific Suggestions are put forward from the level of project decision-making.