The Research On The Application Of PFI Model In Water Conservancy Projects

In recent years, the climate change, frequent disaster and the deficiencies of natural resources issue a challenge to water conservancy. The lag of the water conservancy construction restricts the further development of our country. Therefore, in the next few years, it has become an urgent task for us to accelerate water conservancy development, enlarge investment, save and protect water resources comprehensively. In response to the current situation, the central government issued a document in the next 10 years into water requirements doubled. The central document as a programmatic and guiding document, is related to the central key work in the year-round, is also the country needs to solve the problem. Documents in the new situation first confirmed that water conservancy in a strategic position. At the same time, New 36 supports to encourage private capital in water conservancy project construction. Through the establishment of charge compensation mechanism, a government subsidies, taking the owner and the contractor bidding leasing means, attractting private capital investment, irrigation and water conservancy construction inter-basin water diversion and comprehensive utilization of water resources, water and soil conservation, water conservancy project.With the good economic situation and policy support, for China's development mode of PFI water conservancy project provides favorable conditions.Now, the construction of water conservancy project has failed to meet the needs of the society. Furthermore, the government's income for the water conservancy project falls short of its financial expenditure, which brings prominent pressure. In light of above situation, the government should take market principle to raise funds as far as possible, and introduce market management mechanism to manage water conservancy projects. PFI model provides government a better way to relief financial pressure. In this way, government puts forward project target according to the social demand, then the private sectors take responsibility for the design, construction and operation of the project. What the government need only to do is to pay the private sectors for their services and facilities, to transfer the financing and completion risk to the private sectors so that finally forming the public products supply system of low cost and high quality, which rely mainly on private capital. Only by widely attracting private capital, vigorously developing privately-run water conservancy, making full use of private funds, can our country better promote the sustainable development of water conservancy. From this perspective, to apply PFI model in water conservancy projects is of great significance for promoting the construction of water conservancy projects and alleviating the financial pressure of government.This thesis falls on five parts. They are:the introduction, the basic theories, the researches on application, the analysis of feasibility and advice for government's policy.The first part is an introduction. It expounds generally the background and significance of this thesis, takes an analysis of the researches abroad and at home, and introduces the research methods, structural frame and innovations of the thesis.The second part introduces the basic theories of the application of PFI Model in water conservancy projects. This part aims to give a definition and define the properties of water conservancy projects. According to project distinction theory, different characteristics of water conservancy project in China is divided into pure management of water conservancy project, quasi-business water conservancy projects and non-business water conservancy project. Carrying out systematically the researches on the main source of funds and the main body of financing in Water conservancy project financing helps government to define its goal and responsibility in constructing different types of water conservancy projects.The third part takes an analysis of the present situation of water conservancy project financing in China. According to the development and present situation of water conservancy project financing in China, the author elaborates the existing problems and analyzes the determining factors in China's water conservancy project financing.Part four is the analysis of application PFI model in water conservancy project. Firstly, the feasibility of PFI model used in water conservancy project is discussed from the aspect of government and private sectors. Secondly, through the study of procedures in water conservancy projects financing, this part designs the basic operating processes of China's application of PFI model in water conservancy projects on the basis of PFI Theory so as to ensure the projects completed successfully. Finally, this part draws lessons from foreign experience in using PFI model successfully. Britain firstly put forward the concept of PFI and is the earliest country which brought public construction into the private sectors. Japan's development of PFI is the most comprehensive and advanced among Asian countries. Proceeding from China's actual conditions, this thesis mainly analyzes the British and Japanese construction experience of PFI project from which some successful factors are extracted. Both British government'standardization documents and professional organizations, and Japanese government's perfect law system and timely, transparent information proposed reference for Chinese government's management of PFI projects. It can ensure effective operation of PFI model in water conservancy projects.Part five is suggestions and strategies about PFI model used in water conservancy projects. In this part, some suggestions and strategies that China may apply in water conservancy projects are put forward by the analysis of related theories and facts. First of all, we must intensify the promotion of PFI Model and cultivate professional talents who can better service the PFI projects. Second, we must establish the primary responsibility administration which provides effective mechanism in order to avoid regulation conflicting and loopholes in management. We should build the competitive environment in which private enterprises compete fairly. We should also establish a government management framework including the incentive mechanism for the bidders or contractors, the supervision mechanism for project contracting and operation, and the like. Finally, in order to ensure the quality of the construction and the timely delivery of water conservancy facilities, the government must establish effective supervision system, adopt reward-punishment mechanism to mobilize the enthusiasm of the private sectors, and adopt other auxiliary mechanism so that the PFI water conservancy projects in our country can be developed standardized and efficiently.