Research On Investment Decision Of PPP Project Of Sewage Treatment Plant Based On Real Option Theory

In recent years,more and more attention has been paid to environmental protection.Meanwhile,with the aggravation of water pollution and the increasingly stringent standards for sewage discharge,people's demand for sewage treatment is increasingly urgent.With the rapid development of the city,the financial pressure of the government is also increasing.In order to relieve the financial pressure,PPP mode has gradually stepped into the stage of urban construction.However,the PPP model is not attractive enough for some large private enterprises,one of the main reasons is that the development of PPP projects is uncertain and risky.Therefore,it is extremely necessary to study the value of PPP projects,and the real evaluation of the value of PPP projects from an objective perspective can become the basic basis for investors to choose schemes.From the standpoint of private enterprises,this paper discusses the value evaluation in PPP project investment.Based on the research results of PPP model,PPP investment decision,real option and other relevant theories at home and abroad,it is pointed out that PPP projects have high investment cost,long construction cycle and great uncertainty.Through the policy interpretation and in-depth analysis of sewage PPP project,the basic properties,basic structure and operation process of it are discussed.On this basis,the differences between the inherent traditional evaluation method and the real option method are further described,and the shortcomings of the traditional evaluation method and the applicability of the real option method are summarized.Then,based on the risk identification and option analysis of the project,the value evaluation model of PPP project of sewage treatment plant is established,and typical examples are introduced for in-depth analysis,so as to verify the practicability of the model.The research shows that the application of real option method can make up for the defects of traditional investment evaluation method,and can evaluate the value of PPP projects more objectively and truly.