Financing Concession Contract PROT Operating Small Hydropower Projects

With the rapid development of social economy, the growing renewable energy increasingly receive attention, water resources is one of the most important renewable energy, make full use of water resources is a stable and continuous resource supply security for our country’s electric energy. Due to the unique water resource distribution in our country, the advantage of small and medium-sized hydropower stations in our country is increasingly obvious, however because of the early unreasonable development and utilization, and upgrade and transform the large-scale construction funds needed for the small and medium-sized hydropower station is difficult to solved through traditional corporate financing, and private capital enter the small and medium-sized hydropower stations has little opportunity, operating small and medium-sized hydropower station in our country has been in a low state. Since1960s, project finance as a kind of new type in the field of private capital enter public infrastructure caused a lot of attention by the theorists and practitioners, and rapid popularization and application in the world scope. Such as BOT, TOT, POT, ROT and other project finance models and their derivative forms made a great contribution to many public infrastructure constructions, also provided a reference for using private capital enter the electric power project construction, upgrading the small and medium-sized hydropower station.However, private capital is relatively small, doesn’t have the ability to enter the construction of small and medium-sized hydropower stations, and also doesn’t accord with the purpose of the upgrading and transformation of small and medium-sized hydropower stations, therefore, on the basis of traditional project finances, PROT project finance model arises at the historic moment. PROT mode is "Purchases-Rehabilitate-Operate-Transfer" mode. It’s an innovation of small and medium-sized hydropower project finance pattern after a long period operating of BOT, TOT, POT, ROT and other project finances.This article began from discussing the advantages and disadvantages of applying various project finance models on public infrastructure construction by using historical analysis, theoretical analysis, comparative analysis, system analysis, inductive analysis and strategy analysis, practical analysis, come to summarize that PROT project finance mode applied in our country upgrading of small and medium-sized hydropower stations, the transformation of the construction is necessary and feasible. However, because of our country at present very few uses the PROT project finance mode to upgrade and renovate small and medium-sized hydropower stations, so how to refine the obligations of the government and private investors undoubtedly became the premise condition of applying the PROT project finance model on small and medium-sized hydropower stations.This paper is divided into six chapters:the first chapter is the introduction part, mainly researches the article background and research significance, purpose and theory basis; The second chapter has discussed the theory of infrastructure project finance franchise, including the project finance concept of franchising, legal relations, the franchise contract rights and obligations of both parties and the species of project financing franchise; The third chapter focuses on the infrastructure franchise at home and abroad present situation and deficiencies; The fourth chapter discusses various project finance modes of operating small and medium-sized hydropower stations, and conclude that PROT project finance mode is the most suitable mode for the small and medium-sized hydropower stations, also analysis the PROT project finance model for contract management and strategic; The fifth chapter mainly through standard franchise contract details discusses PROT project finance mode for small and medium-sized hydropower station; The sixth chapter is the conclusion, writer hope the research of the franchise contract details can promote an establishment of the legal system for PROT project finance model, and provide a starting point for further research.