Research On Financial Evaluation Of Sponge City PPP Projects

In recent years,with the rapid development of urbanization,the speed of infrastructure construction is accelerated increasingly.However,the original ecological background and hydrological characteristics have been destroyed due to the extensive application of cement construction,which lead to serious waterlogging and black and ugly water bodies in many areas.In order to improve the situation,China began to carry out the sponge city pilot in some areas.In order to improve the efficiency of financial funds and ensure the efficiency of project construction and supply quality,the governments encourage social capital to participate in infrastructure construction of the sponge city.The scale of the sponge city project has developed rapidly in the previous years,but it has developed relatively slowly in recent years.There are macro factors behind this,but it is also related to the low financial evaluation degree of sponge city PPP project.By collecting the financial evaluation data of sponge city PPP project,this paper found that the financial evaluation index analysis,unscientific method of discount rate,and unreasonable calculation of subsidy income.In order to solve the above problems,this paper proposes the financial evaluation of sponge city PPP project.First of all,the sponge city PPP project is constructed from the perspective of government and investors,with financial evaluation indicators such as financial contribution,value for money,financial tolerance and financial internal rate of return of capital.Secondly,the benchmark yield of the project investment is determined through the CAPM model and the WACC model.Then,the government subsidy formula is improved from the calculation principle of the formula and the value range of the calculation parameters.Finally,this paper applies the improved method to the financial evaluation of Lai Xi Sponge City PPP project.It is believed that the financial evaluation indicators designed in this paper can meet the decision needs of public and private parties.The discount rate jointly determined by the capital asset pricing model and the weighted average cost model can reflect the characteristics of the sponge city project.The use of the improved Treasury government subsidy model can achieve a smooth financial payment,more in line with the requirements of public and private cooperation.It is recommended that the government and social capital parties should set discount rates scientifically,explore diversified income channels for projects,improve the financial evaluation system,adjust subsidy models,and strengthen supervision and management.The research in this paper can not only enrich the project financial evaluation theory and the sponge city project research theory,but also provide financial support for the government project review,bidding and procurement,and the social capital party participation in the investment decisions of the sponge city PPP project.