The Research Of Reclaimed Water Project On Asset-backed Securitization Financing In Our Country

With the accelerating of urbanization process and the water pollution of theenvironment problem increasingly serious, the shortage of water resources has appearedin many parts of china. Reclaimed water reuse is one of effective methods in numerousmitigation methods, and its status and role are increasingly prominent. But theconstruction of reclaimed water project is still sow, which the most important cause isthe insufficient funds. Asset-backed securitization, as one of the project financing modeof innovation, has been applied in all kinds of infrastructure construction. This articleintroduces asset-backed securitization of reclaimed water project financing, anddiscusses its operation flow and financing risk, which provide a new way of thinking forthe reclaimed water project financing.First of all, comparative analysis was made between the present situation ofreclaimed water project and the mode of financing, it points out that the limitation ofexisted financing mode, such as the government budget is limited, the bank loans isshort term, the transfer price and term of franchise mode is a big controversy, these lay afoundation for asset-backed securitization used in reclaimed water project introduction.Through compared with the other modes of financing, it gets the conclusion thatasset-backed securitization is suitable for the large amount financing of reclaimed waterprojects.Secondly, asset-backed securitization financing of reclaimed water project wasdesigned, and the pricing model and constraint condition are analyzed briefly, and thenthrough establishing the measurement method of risk evaluation model based onentropy to discusses the two key problems which are the operation of financing processand the financing risks. And Processes include forming asset pool, form a SPV, creditrating and enhancement, issuing securities, investors pay income; Financing riskcontains five primary risk factors and19secondary risk factors.At last, using the reclaimed water project of Beijing Gao Bei Dian, it calculatesthat the rate of yield is7.089%and the investment recovery period is11.76years, whichverify that the project uses the asset-backed securitization financing is feasible. Usingthe entropy measure method to evaluate the project financing risks, it concludes that theproject risk is level3, which not only provide theoretical and decision-making basis forall the reclaimed water project participants of various asset securitization,but also put forward the management strategy which to the question of reclaimed water projectassets securities financing risks.