The Research For The Public-private Partnership Of Urban Sewage Treatment

Traditional urban sewage treatment plants were constructed by the way of investment under the planned economic system. That is to say, the relevant government departments were responsible for the construction of sewage treatment plants and their financing and following sewage treatment plant operations. Therefore, the local governments not only had to undertake the high costs of infrastructure, but also should undertake the operating costs of sewage treatment plants. With the socio-economic development and the improvement of people's living conditions, people's demand for public infrastructure is increasing in recent years in China. However, the state financial expenditure has been far from satisfying the huge needs for public infrastructure investment. The governments at various levels begin trying to use multiple channels to raise funds for infrastructure constructions along with the further deepening of Chinese economic reform. A lot of non-governmental investments are raised for the development of municipal utilities. Facing with the new model of Public-Private Partnerships, how to study it in the academic community and how to be effectively managed by the governments will be the continuous process of exploration and summary.In general, public-private partnership means a system of long-term partnership which is set up to help public and private sectors more efficiently cooperate for the provision of public services. On one hand, it is a kind of buyer-seller relationship between public sectors and private sectors for public services. On the other hand, it is also a kind of relationship of supervision and being supervised. In this relationship, the private sectors function as the producers and operators for public services, while the public sectors as supervisors in the public services market.This paper will conduct the intensive theoretical research in the fields of the characteristics of Public-Private Partnership, its causes and theoretical basis for implementation, the common models used in China, as well as the institutional arrangements. And then taking urban sewage treatment industry as an example under the context of its scale expansion and institutional reform, the paper analyzes the practices and experience of public-private partnerships in this industry, and reflects on the problems encountered in the process of practice. Based on these, this paper will put forward relevant comments and suggestions in the aspects of improving laws and regulations, enhancing effective competition, perfecting the regulatory system for public utilities, improving risk-benefit distribution mechanism and the price hearing system, as well as making better sewage treatment technology, etc.This study aims to explore the effective practice of public-private partnership in urban sewage treatment industry, and how to improve the efficient use of invested funds and operational efficiency, in order to achieve the beneficial cycle in which all parties involved into the marketization of urban sewage treatment under government guidance.