The Case Study On PPP Project Asset-based Securitization

In recent years,our country has strict control over local government debt,and the management of debt scale,especially the debt scale of local government financing platform,it has become increasingly standardized.With the formal implementation of the PPP model in China in 2014 and the gradual introduction of relevant laws and policies on the PPP model,the PPP model has become an important national strategy in China.However,PPP projects need a lot of capital investment in the initial stage,and the capital recovery cycle is longer,so a lot of social capital which is not very strong in financial resources is discouraging PPP projects,which will have a negative impact on the continued promotion of the PPP model.In March 2017,as one of the refinancing channels of PPP project,the asset-based securitization of PPP project was officially launched;however,there will be many problems in the process of practice of the asset-based securitization of PPP project.How to standardize and solve these problems has become the primary task of developing the asset-based securitization of PPP project in China.As one of the first four single PPP asset-based securitization projects,this paper takes "CFLD heating charge PPP asset-based securitization project" as a case study,mainly through case analysis,literature analysis,chart analysis,comparative analysis and other methods,first through the development process of China’s PPP model and the development of PPP project asset-based securitization.The course,necessity and practical essentials are summarized and analyzed.Then the case is interpreted,and a comprehensive analysis is made from seven angles: industry background,financing motivation,basic asset-baseds,cash flow,credit and risk,financial effect,and comparative analysis of domestic and foreign practices.Finally,the insufficiency of CFLD heating charge PPP asset-based securitization project is explained,and then it rises to the present situation in China.At last,the paper puts forward corresponding countermeasures and suggestions in order to provide reference and guidance for the subsequent PPP projects in China to carry out asset-based securitization.The research finds that although CFLD heating charge PPP asset-based securitization project has opened up the financing channel of CFLD,activated the stock asset-baseds of the PPP project,improved the liquidity of the asset-baseds,and improved the efficiency of the company’s asset-baseds use,the franchise right of the basic asset-baseds of the project is separated from the profit right of heating charge,and the real bankruptcy isolation and "real sale" have not been realized.This is the biggest problem of the project;from the perspective of the development of PPP model in China,there are three low performances of PPP project in China: low participation of private enterprises,low landing rate and return rate,and the financial burden of the government is large,and the responsibilities of the Ministry of Finance and the Development and Reform Commission of the two ministries in charge of PPP work are relatively unclear;from the perspective of the asset-based securitization process of PPP project,China’s PPP asset-based Securitization The overall number of projects is small,the laws and regulations system is incomplete,the external credit enhancement tools are less,and the secondary market construction is not perfect.In order to do a good job of PPP asset-based securitization project,we need to improve from three aspects: PPP project,project process and PPP project asset-based securitization law and regulation system,and the most important aspect is to build and improve the law and regulation system as the top-level design of implementing PPP project asset-based securitization.Only in this way,the asset-based securitization of PPP project and its supporting problems will be solved.The case used in the case analysis in this paper are still in existence,the progress of the project needs further tracking and observation,and the PPP system and asset securitization system in China are not yet perfect,coupled with my limited research level,so it is inevitable that in the process of writing this paper,the research on some issues is not thorough enough,and some things can not be quantified.The body unfolds.In addition,due to my professional limitations,I have not been able to study some other professional areas.