Research On Mechanism Of Water Resource Repaying Foreign Capitals

Water conservancy is the foundation of the national economy industries, which has a great significance to the growth of the national economy and social stability. Because the World Bank concluded soft loans to China, and some projects implemented in 1980s and 1990s are gradually entering the repayment period, China's water conservancy projects using foreign capitals are facing enormous pressure and risk, and many projects using foreign capitals are in arrears. Therefore, establishing the healthy mechanism of water conservancy projects repaying foreign capitals is emergent.The paper investigated and analyzed the factual mechanism of water conservancy projects repaying foreign capitals from the actual complexion of water resource using foreign loans and repaying the loans, found out the risks and main problems and the causes in water resource using and repaying the foreign capitals, and analyzed the experience and lessons of other countries utilizing foreign capital. Finally, the paper presented the mechanism of macro- machinery and micro-machinery in light of analyzing the case of the north irrigation project using the World Bank loan. the macroscopic safeguard mechanism includes: The water conservation project exchange rate risk undertaking; The water conservation project interest rate risk undertaking; the project management according to the income type. Microscopic safeguard mechanism includes: Establishment of the organizations and agencies repaying loans; The mechanism of the risk early warning; Completing the engineering project the risk management.The establishment of healthy mechanism has great significance, it will be helpful to prevent and mitigate the risk of repaying the loans and establish China's good reputation, and it will help Chinese water resource have a steady and sustained development.