Research On Investment Feasibility Of BOT Projects In Maojiawan Sewage Treatment Plant

With the rapid development of economy in China, the process of urbanization is speeding up, and the urban sewage discharge is increasing. In order to solve the problem of urban sewage treatment in China, Chinese government clearly put forward the goal of sewage treatment planning in the "Twelfth Five Year Plan". Infrastructure construction usually needs a huge government spending. The current government is lack of financial resources and cannot meet the growing needs of urban sewage treatment. However, as a way to attract private capital to invest infrastructure construction project, BOT is a good financing model to solve the problem in the government funding, which shows great advantages to solving the urban sewage treatment problem. Therefore, the introduction of the BOT financing model plays an important role in the construction of urban sewage treatment project. While due to the special characteristics of the BOT model in the field of public facilities (or service), it is very critical to identify and avoid the risk of the project.Firstly, this paper summarizes the characteristics of the sewage treatment project, the BOT investment model and the risk management of BOT project, which provides a solid theoretical basis for the below; Secondly, this paper takes the BOT project of Maojiawan sewage treatment plant as an example, from four aspects to introduce this project, including project overview, the scale of construction, the sewage treatment technology and the investment and financing situation of this project. Thirdly, this paper carries on the financial evaluation and uncertainty analysis to the Maojiawan BOT project. From the financial point of view, the evaluation results show that the project can achieve good economic benefits after studying the practical value and risk of the project. Its indirect benefits (such as social, environmental benefits) are greater than its direct economic benefits, and it will play an important role to the entire city’s economic development; Finally, this paper analyzes the main problems and the potential risks and external risks in the project, and puts forward the measures to deal with the risk of the project.This paper has combined theory and practice, from many aspects of the sewage treatment plant BOT project analysis and evaluation, to reduce the possibility of investment failure and to avoid investment risk. Also it’s for the future projects of the same type of investment assessment and risk management to provide a reference value.