| It is generally known that water conservancy, the basic industry that builds irrigation works and prevents floods, now is more and more important in the national economy; but on the other hand, there are still many things to be done to develop the industry. It is arduous to undertake the task of construction and management. Vast amounts of money need to be poured in. The traditional viewpoint lays much stress on the nature of water conservancy project as "public goods" and its nature of public interest, and argues that the government alone should invest on the industry. But facts prove that, with the advancement of society, economy and technology, if we overlook the nature of water conservancy project as "quasi-public goods", it is no good in allocating resources efficiently, and meanwhile, it's hard to find ways to finance the industry so that the industry is incapable of self-supporting, self-maintaining and self-improving. The government is also hard up by the problem of money shortage for the construction. In order to solve the problem of capital source and in line with the objective requirements of water resources adopting the market principle, the administrations of water conservancy and the departments in charge of the irrigation works, from the central government to local governments at all levels, are keeping exploring more efficient ways of financing so as to meet the ever-growing needs of national economy for the infrastructure of water conservancy. Based on such background and the present situation of water conservancy in Sichuan, the author tries to probe into some solutions to the problems in financing the industry of water conservancy with the support of theoretical studies in his MBA courses and his own working experiences. The whole article consists of three chapters.Chapter I: It is a generalization of asset securitization. It theoreticallyreviews and analyzes the relevant concepts, functions, categories and operational processes of asset securitization so as to pave a way for the initial study of this paper.Chapter II: Based on the theories of chapter I, it analyzes the necessity and feasibility of direct financing in Du Jiangyan Water Conservancy Industry Group Ltd. (short for the Group in the following paragraph), which is searching how to carry out securitization of separated operational assets. Firstly, the analysis goes to the necessity of asset securitization. It describes the basic condition and development strategy of the Group, and analyzes the present situation of the investment and financing of the Group. Secondly, it probes into the feasibility of asset securitization. Starting with the theories of public economics, it analyzes the economic nature of water conservancy project as one of the infrastructures. It puts forward that as water resource is scarce and becomes more competitive, the operational feature of water infrastructure as "quasi-public goods" is relatively prominent. Meanwhile, it illustrates the feature of stable expected cash flow so as to offer the possibility of carrying out asset securitization. Chapter III: It analyzes preliminary a program of asset securitization for the separated subsidiary of the Group. Supplying the industrial and residential use of water for the city of Chengdu, the separated subsidiary integrates the good assets into "a highway of water" so as to securitize the assets. It also analyzes some related content and basic evidences. It points out the main obstacles of carrying out the asset securitization under the present management system of water conservancy project, as well as the solutions to such problems. It probes into some legal systems and how to ensure the selling of bonds and the repayment of investment with interest as well.Asset securitization of water conservancy is an entirely new subjectin our country, especially in the western China. Hard as the author tried, due to deficiency of theories and practice, some statistics and information cannot be obtained because of confidential reasons and others... |
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