Research On Financial Management Of Agriculture Investment Program In Angola Based On PPP Mode

The Third Plenary Session of the eighteen Committee of the Communist Party of Chinaput forward that China should safeguard the effective supply of agricultural product byincreasing self-sufficiency in food and making full advantage of the international market tooptimize allocation of resources. Researching the investment modes that applied by Chineseenterprises when they invest in international agricultural projects is the core element concernsthe feasibility of overseas investment. It is an important precondition for the trust of the hostcountries to take suited models. The study focusing on the investment models and financialmanagement of international agricultural projects has a strategic significance on the interestsof the project, increasing the overseas supply of cereal product for our country, the win-winprogress of the investors and the investees.Based on the theory of investment and industrial economics and combining the casethat the China Citic construction company cooperating with the Angolan government foragricultural investment, this paper introduces the operation of PPP mode in the case project,analyzes the project approval procedure and risk-sharing mechanism in Angola laws, and thefinancial feasibility of the project under the PPP mode. The project is financially feasible. Onthis basis the project risk in the PPP mode operation is analyzed, in order to promote Chinaand Angola agricultural cooperation and put forward feasible countermeasures andsuggestions.Through the study, a conclusion can be drew that the investment risk of the project canbe effective controlled. As partners of the investor, the government and community canbalance the interests of all parties and find the best point of common interests by the projectmode. Under this mode, the paper analyzed the benefit of investment and found that theinternal rate of return of this project is higher than the risk-free rate of return in Angola. Atthe same time, the project will produce great economic benefit and social benefit for the localplace, just like stimulating social investment growth and generating a lot of jobs. This projectunder PPP mode deepened the bilateral economic and trade relations and the two sidesachieved a win-win development.