Quantitative Research On Risk Relationship Of Sewage Treatment Plant Of Concession Operation

The market of city sewage treatment projects is vast. The main problem of constructing the projects is the financing channels and how to operate it after it is built. As the governments is lack of funds and experience of operation, the concession model which is beneficial to raise money and increase efficiency, is the prime choice of all kinds of financing models. So, the risk problem of concession operation is the crucial problem, the research on risk of concession operation is helpful to avoid risks for the governments, financing parts and contractors, this is crucial for the success of the projects.The purpose of the paper is to study the risk relationship of sewage treatment plants based on the concession model. By the way of literature review, data collection and model matching etc. the risk relationship of sewage treatment plants can be quantified , which provide a reference for the risk management of the projects. Firstly, the concept and the advantages and disadvantages of concession financing model are introduced, and the risk problems are collected and analyzed, and the simple risk relationship is proposed. Secondly, the situation of the sewage treatment projects is introduced ,and the problem of risk relationship is analyzed in the framework of concession model, after which the model of risk relationship is constructed and the data of the measurement variables is collected by the way of questionnaire survey and literature review. Last but not the least, the principal of SEM is introduced and the model is quantified by the way of SEM ,which forms the conclusion of this article.