Risk Management Of Small Hydropower Project Financing PROT

In China, The Developable Resources of the small and medium-sized hydropower ranks first in the world. As a green renewable resources, the small and medium-sized hydropower station across a third of the counties throughout the country, if it have a properly development, operation and management, it will have good ecological benefits and economic benefits to the location. Rational development the small hydropower not only bring to the local government considerable financial income, but also an effective way to increase the incomes of local residents. At the same time, enrichment area of small hydropower resources is also vegetation good areas. Rational development the small hydropower, use hydroelectric power instead of cutting down trees as a life use, it will have a great benefit to local vegetation protection, avoid water loss and soil erosion, population, resources&environment’s coordinated and sustainable development.As a result of the above advantages of small hydropower, our country open a upsurge of small hydropower development at the beginning of this century. But because the developers often pay attention to only the economic benefit of small hydropower stations, only pursues the maximization of enterprise benefit; also due to the lack of supervision or the benefit drive, the local government failed to put a stop to the mess of small and medium-sized hydropower development. The phenomenon of disorderly development about the small and medium-sized hydropower is very outstanding in a period of time. Such as:ignore the environment protection when develop the small and medium-sized hydropower that cause damage to the environment, power stations lack of effective management system, equipment aging, unsafe, low prices that difficult to recover cost. These have an adverse effect to our country’s small and medium-sized hydropower develop.On the basis of the field survey, this paper used the method of check list. In the full collection and understand the problem on China’s small and medium-sized hydropower development process, combination of case, identify small and medium-sized hydropower PROT project financing model’s risk after comprehensive consideration three dimensions:project implementation steps (Purchases stage,"P" (Purchases), project reconstruction stage,"R"(Rehabilitate), operating management when set up the project company,"O"(Operate), transition,"T"(Transfer)), interested party in this project (government, social investors, small and medium-sized hydropower’s original owners and employees, local residents) and potential risk(economic risk, management risk, policy risk, environment risk, legal risk). Set up small and medium-sized hydropower PROT financing risk comprehensive evaluation index system, select AHP method to build the indicator weight and quantitative evaluation the risk. The results show that in the small and medium-sized hydropower PROT financing risk, lack of environmental protection mechanism and measures, the environment standard requirements by the government, government have no system planning, fail to comply with relevant environmental protection law, contract loopholes, unstable policy re the relatively important, ranks front risks. On that basis, use ZOPP method, proposed risk control opinion and risk management plan. Establish the Problem Tree and Target Tree, form three projects to control risk:1.Rational use funds;2.Compliance management;3.Get a good development environment. Then, use highest score project3as an example to make project implementation plan and project management process.From case analysis we can see that small and medium-sized hydropower PROT financing mode is effective and practical for solving the difficulties faced by small and medium-sized hydropower. It has a certain reference value for small and medium-sized hydropower development. In this paper, the risk identification, quantification, evaluation provide certain reference to small and medium-sized hydropower development planning in the future. There is a certain gap for China&developed countries in a field of small and medium-sized hydropower planning, design, and environmental harmony. With more and more attention about ecological protection in resources development by people, we should carry out the research of this aspect in a deep-going way, help small and medium-sized hydropower scientific, reasonable and sustainable development.