Research On Public Project Using Foreign Capital On Waterworks In Shandong

Water is the source of life. Water resources administration is the foundation of the national economic development. Public welfare project in water sector, using foreign capital, is the important ingredient of water resources administration development, which is significant to push sound development and reformation of Shandong waterworks. As early as in1986, Shandong Provincial Government started using loan financing from foreign governments and international financial organizations, as well as grant assistance for water foundation facilities construction. Up to the end of2010, the foreign capital investment projects on waterworks in Shandong completed as much as RMB4billion yuan, in which, using foreign finance more than RMB2billion yuan. These projects focused on a series of public projects and engineers on water, which offered financial support to waterworks and stimulated the vitality to local economic development. They played an important role in improving the production and living standards for local people and achieved the significant benefit on economic, society and ecological environment. Due to these projects, the water resources administration process in Shandong got promoted greatly. With the background of economic globalization, the public project using foreign capital on water is a joint process of expanding the understanding, exchange and cooperation in line with international practice, as well as the process of Shandong water resources administration adapting itself to merge with the economic globalization. With the help of public project using foreign capital on water sector in Shandong, it witnessed the introduction of foreign financial assistance from international finance organization as well as the advanced management concept and techniques, which is like the running water from source, offering endless driving force and power for the reformation and innovation to the water resources administration in Shandong.From the beginning of1980s to the end of the11th "Five-Year" Plan in2010, the public project using foreign capital on water in Shandong has come a long way in nearly30years. The30-year "s way is also the way of Chinese economic reform and open to the outside world, as well as the way of the public project using foreign capital on water in the whole country. Therefore, this paper is written right in the time with the above background. With the above background of30-year national economic reform and30-year using foreign capital on water, the author expects to hackle and study the achievements of public project using foreign capital on water in such big province of Shandong, incorporated with public management theory and method to do the research. Furthermore, through the reach, the issues in the work of using foreign capital on waterworks are expected to be found for analyzed and reasoned from different view points, such as system, policy, mechanism and human resources, and accordingly, the counter measures are found, which are the innovated research from the profundity and comprehensiveness, contributed by this paper.With the view point of public administration, this paper made analysis on the connotation, categorization, and characteristics of public project using foreign capital on water in Shandong. As the foundation and strategic resources of national economic and social development, water is a kind of irreplaceable public goods. And as public welfare work, the public waterworks project cannot be established by market competition, due to the universality of beneficiary and uncertainty of direct benefit to investors, therefore it is usually organized and managed by government agency. Especially, the public project using foreign capital on waterworks demands sufficient domestic counterpart fund as guarantee, which is one of the important factors of governmental economic activities, as one of the main public finance expenditures.When analyzing the main issues and causes in public project using foreign capital on waterworks, the author made a profound analysis from the view point of the role of government, policy and mechanism as well. After analysis, it concluded that the vulnerability and faultiness in mechanism is the essential cause of the issues, in addition to technical causes. The public project using foreign capital on waterworks in Shandong needs contribute more to the reformation and innovation of water resources administration in a new period and new historical development, on the basis of updating the concept, freeing the minds, as well as establishing a completed system of guarantee measures, showing a platform for Foreign Capital to comply with and service to the water resources administration in Shandong Province.