| Water industry is an important part of the city basic public facilities, which is the foundation department of supporting a country’s economic operation. It decides the development level of the direct production activities such as industry, agriculture, business. So, urban construction of water industry is the material guarantee of accelerating the process of urbanization and promoting city modernization. In recent years, with the rapid development of social economy and the speeding up of urbanization, along with our country social economy development, the acceleration of urbanization, the expanding number of cities, the increasing urban population and the rapidly development of industrial production, the water environment including urban domestic water, industrial water, agricultural water and ecological water, has become increasingly tense.What is more, the shortage of water resources and water pollution, the harm to environment and ecology also shows increasingly seriously. All of these has affected the normal life of the urban residents, restricting the further development of urban economy.The formation of these problems, mainly from the following two reasons:on the one hand, people are not carried out on the theory product attributes division of the water industry.And because of lacking management awareness, they determine the construction of the project, investment and operation only from the angle of social benefits, and ignore the economic attribute of water utilities industry, which make the operation of the project have no economic efficiency or not obvious economic benefits, ultimately unsustainable; on the other hand, social economic development and urbanization process accelerated has caused the deepening conflict of the supply and demand of water facilities. However, the need to increase water facilities investment is limited by current urban construction investment and financing system, and relatively narrow financing channel. In general, there are two key problems of water industry development in our country, one is the shortage of investment funds, the one is the low investment efficiency and management benefit.China water investment capital insufficiency and low efficiency problem is in part by China’s water industry investment and financing system. For a long time, our country local government is the main part of the urban construction, and the water industry has been regarded as a municipal construction projects. The government investment is the main body of our country’s water and the construction, management and operation of the project is based on the local government financial resources and accumulating. Generally, the central government considers arranging part of the water and other public facilities construction to form a complete set in key construction projects. And investment in such public facilities is generally grants properties. Mostly, these water constructions is paid by local governments and constructed by local construction administrative competent department. The unitary financing source and limited quantity are far from enough for the needs of the development of urban construction of water.At the same time, there are more and more history debt, management problems, serious loss phenomenon of city water industry because of the lack of market-oriented operation, investment, construction, and operating without a market-oriented enterprise management, function disorder in the process of construction. As the city basic facilities, water sector "default" for a long time, not only hindered the improvement of living standards, but also greatly affected the region economy development, thus to influence the overall process of economic development in China.Because traditionally the monopoly by the government, all funds provided by the state, now in order to introduce private capital, we must reform investment system correspondingly, which easing private capital areas, encouraging private capital to enter in it.. At the same time, because the water industry is a typical natural monopoly industry, in which asset is specified, sunk cost is huge, and has obvious economical efficiency of scale.,it has a relatively high financial risk to enter under the original financing system,and the private capital always take a conservative attitude. Therefore, we must establish the effective water industry marketization of investment and financing system and water industry investment and financing incentives system to incentive private capital to investment in the water industry. How to look for flexible and practical method of financing from the development of water industry investment and financing channels to create the conditions of making the financial strength of the nongovernmental investment subject fetching water sector; to attract and encourage social idle funds to enter at the same time; to make the water construction investment subject pluralism, to diversify the financing channels;to increase the investment level of water city, has become one of our country’s main content of the construction of urban water research in the next few years, as well as the key to promote the urbanization process, to speed up the urban economic and social development. In addition, how to realize the marketization of construction operation, change the status of the low water industry investment benefit, has become an urgent problem of China’s water industry investment and financing. This is what this article will discuss and analyse. In the main background of China investment and financing system reforming and opening to the domestic and foreign capital of public utilities as well as the increasing of building water industry investment, the research on how to break through the original investment models, to open up new financing channels, to establish new investment and financing mechanism has the urgency and realistic significance. With the speeding up of urbanization and the development of social economy, the government is difficult to bear the heavier and heavier burden, the water investment diversification, public utility privatization, has become the global water industry development trend. Diversification of investment in Chinese water market is not only feasible, but also is indispensable. Diversification of investment has brought an important subject that is the water industry investment and financing system reform. It is in this context, this paper discusses the investment and financing issues related to water industry in our country.View of the water industry in China facing the shortage of funds and low efficiency, this article, beginning with the water industry investment and financing management system,will look for solving two big problem in the way to promote the market of water industry investment and-financing, to improve the operational efficiency of the water industry through the competition mechanism, and to solve the problem of water industry investment incentives through the cost compensation change and market access, pricing, property right system reform. In addition, this paper put forward to establish diversified water industry investment and financing system, establish water industry marketization operation mechanism reform train of thought through drawing lessons from foreign experience and on the basis of summarizing the domestic typical cases, probing into China’s water industry investment and financing system reform.In this paper, the research content mainly includes:(1) The economic characteristics of the water industry in China. In this part of content, it mainly analyzes the public goods attribute of water utilities industry, natural monopoly, asset specificity, vendibility and other economic characteristics. Through the analysis of water industry economic and technical characteristics, it lays the foundation of studying the feasibility of water industry marketization operating and management system reform.(2) The selection of investment and financing path of China’s water industry marketization. In the process of water industry marketization, aimed at the practical problems existing in the water industry in our country, in order to realize effective competition, through the PPP, BOT, TOT, PFI model, this section realize the marketization of water industry investment and financing.(3) Market-oriented incentive mechanism of water industry investment and financing in our country. This part analyzes the inner power of water industry investment and financing, from the cost compensation mechanism for water industry and water pricing mechanism. And discusses the external excitation condition of the water industry from the water property rights system vicissitude and the water industry market access system reform.(4) The experience for reference of water industry marketization of investment and financing in our country. This part analyzes the France, the United States, Britain, Germany, Japan and Singapore’s water industry investment and financing system, through the comparative analysis of investment and financing system of these countries, summarize the experiences of water industry marketization of investment and financing in our country can draw lessons from.(5) Analysis of typical cases of China’s water industry marketization of investment and financing. This part analyzes the operation process and economic effect of the water industry marketization of project investment and financing based on chengdu tap water industry ShuiLiuChang B plant project, which is China’s national development planning commission (now the national development and reform commission)’s first approval of BOT project.(6) The advice of perfecting our country’s water industry marketization of investment and financing system. On the basis of summarizing the full text, this paper discusses the overall plan of marketization of investment and financing system reform of water industry in China.It also puts forward the corresponding suggestions from the aspects of transformation of government function, water industry investment and financing, water industry investment and financing market operating mechanism establishment, water industry investment and financing supervision and law system improvement, etcThis paper is a summary and application of related theories based on the results of previous studies, and the innovations of this paper are as the following aspects:(1) This article proposes that public goods in the water industry have the dynamic nature. According to the characteristics of public goods in the water industry, such as dynamic nature, marketability, natural monopoly nature, it proposes that.there is a foundation of marketizing investment and financing in China’s water industry, consequently there is a possibility of the marketization of investment and financing.(2) This article discusses the effect of marketizing investment and financing in way of the BOT, TOT, PPP, PFI and other works in water industry, and regards them as’ paths to the marketization of investment and financing. A substantial absorption of private capital investment in the water industry enables water industry investment and financing marketized, expands the total water industry investment, and promotes the effectiveness and operational efficiency of investment and financing in the water industry.(3) This paper designs incentives of marketizing investment and financing in the water industry. As investment is characterized by the pursuit of return, it analyzes the incentives of investment and financing in the water industry from the two angles of pricing and cost-compensation. Scientific pricing mechanism and cost compensation mechanism protect investors to recover investment costs, get appropriate remuneration, and impel enterprises to invest in the water business.There are some deficiencies in this paper:(1) Owing to the complexity and difficulty in obtaining the data, this article basically uses the qualitative analysis to investigate the investment and financing process in the.water industry, simultaneously quantitative analysis and empirical analysis are applied less.(2)This article concentrates on the theoretical study, and does not pay sufficient attention to actual operational level, affecting to a certain extent the operability of this study. |
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