Research On The Financing Mode Of YN Hydropower Station International Project

2023 marks the 10 th anniversary of the "the Belt and Road",which is increasingly becoming a global public service brand and global collaboration platform.With the diversified financing needs of international engineering projects,corresponding financing models must also adapt and change.In the past,the traditional financing model of international engineering general contracting(EPC)projects,which were designed and funded by project initiators and contracted by construction units,has put significant financial pressure on project initiators.In order to meet the diversified funding needs of foreign projects,more and more governments and project initiators require contractors to participate in the investment and financing of projects.Therefore,a new financing model for international engineering projects that integrates investment,financing,construction,and operation has emerged.According to the project situation under the current "the Belt and Road" policy and the financing needs of the project parties,this paper first describes the traditional financing modes of international EPC projects,and focuses on the comparative analysis of the advantages and disadvantages of the traditional financing modes such as export buyer’s credit,export seller’s credit,two preferential loans and project financing,as well as the current limitations.Then,from the perspective of the project sponsor and the project company,we will analyze and explore the financing mode of the combination of equity financing and debt Financing for international engineering projects,try to combine investment behavior with financing behavior,and use literature research,questionnaire survey,case analysisand other methods,combined with cash flow theory,capital structure theory,risk management theory,etc,Introduce the emerging new financing model for international engineering investment,financing,construction and operation integration projects,and analyze its characteristics,scope of application,and advantages compared to traditional financing models.Then,take Indonesia YN Hydropower Station Project as the case study object.This case is a typical representative of the overseas investment corporate financing mode of the investment,finance,construction and operation integration project.This paper analyzes the advantages of this new financing mode in terms of project income and financing cost from the vertical and horizontal comparison by calculating the financial indicators such as the intrinsic rate of return and net present value of the project and the sensitivity of related risks,And propose preventive measures for existing risks,and then propose improvement suggestions for further promotion.Through the study of a new financing model for international engineering investment,financing,construction and operation integration projects,it will provide new ideas for the transformation and development of international engineering financing projects for Chinese enterprises.The international engineering general contractor can build a community of shared destiny for the main participants of the project company,form an effective linkage of investment,financing,construction and operation,and truly stand in the perspective of the owner’s interests of the project company,Analyze and solve funding issues with the mindset of "optimal input+output",in order to better assist project initiators in carrying out financing work;For the project company,it is also possible to continuously optimize the financing structure,improve financing efficiency,and share the sustainable benefits of the project through collaborative cooperation among all parties involved in the project.