The Financing Study For Decision Based One Utility Tunnel Carried By A State-owned Company

The PPP investment has obtained the dynamic development since 2014,when the PPP mode instructions issued by the Ministry of Finance,in that connecting supply and demand via market transaction,as well as guide the state-owned capital and other social capital providing the public service to government.The PPP model has realized the innovation of investment and financing mechanism,alleviated the financial expenditure of local government,and improved the public satisfaction with public service.Following the principle of "joint venture and interests sharing",PPP model is playing an important role.As a new way of cooperation benefiting from policy supporting,local government aggressively release project for political achievements,ignore potential risks and factors affecting stability and development of the market economy.Gradually the constraint 10% of the financial capacity is broken,the BT project was faked as PPP model,and corporate debt is presented in form of equity as finance sheet,etc.Therefore,a variety of norm documents have been introduced by the government,result in adjustment of the PPP model recently,and also compels the social investors to re-examine the macro environment and market strategy,as well as their own business processes and operation schemes.In view of the uniqueness of any single PPP project,different social investors have different focus on income forecast,equity shares agreement,financing structure,risk judgment and feasibility analysis.This paper chooses a city utility tunnel as a research object and equity structure of PPP cooperation.A special study on two aspects which are financial risk assessment &Financial revenue assessment,is carried out,and a comprehensive analysis is made from various angles,such as the availability offinancial resources,capital costs,fund withdrawal,and the list of project liabilities.In combination with the actual cases,a reasonable model which meets the participation of the state-owned enterprise in the PPP project is explored so as to make it possible to participate in the project.The purpose of market competition can also be recognized in compliance,so as to avoid project failure.At the same time,the limitations and shortcomings of the research are discussed,and the problems that need further research are pointed out.