Ppp Project Financing Model Research In The Application Of China's Urban Water Industry

Along with the dramatic development of national economy and prompt advance of urbanization, the development and construction of urban infrastructure have made great achievements, while it still could not meet the requirements of the state and people and has become the "bottleneck"of economy development. Urban water industry has become one of the urban infrastructures related with the national economy and the people's livelihood and is the focus of reform of public utility. It underwent the transformation of industrialization and market. Currently, it faces the problem of great lack of funds in construction and maintenance. Insufficient investment constrains the development of urban water industry.Based on the current status of urban water industry in China, bringing forward that project financing is the trend to prompt development and operation of urban water industry. Introducing the concept of project financing and project financing theories of BOT,PPP and ABS .this paper discusses the application of BOT model for the reform of urban water industry. The paper also points out several problems in this model and states it is not suitable for the long-term development of water industry in China. After that, the paper analyzes the popular theory of PPP used in. current stage of infrastructure construction. Based on this theory and actual condition of water industry, the paper probes into promoting the development of urban water industry cooperated by government departments and private departments. It also analyzes that the basics for applying the PPP has matured and introduces the major modes and operation procedure of PPP in infrastructure construction in China. Based on that, PPP cooperation model for urban water industry and some implementing advice is put forward. The paper ends with summary and prospect.