The Risk Management Of The TOT Financing Mode In Urban Sewage Treatment Project

In the recent years, with the acceleration of urbanization in our country, the government’s fiscal investment on construction of urban sewage treatment projects cannot adapted to the situation, in order to encourage and attract more capital except the state-owned capital to participate in the construction of urban sewage treatment projects, the market-oriented reforms has been implemented on the China’s original investment and financing system. As a new way of investment operation, TOT financing mode, has huge advantages to revitalize stock assets, and gets paid more attention, furthermore, has been applied in urban sewage treatment projects in China. But large investment scale and the long-term franchise decide that the TOT investment project is full of hazard, whether those faced risks can be effectively solved during the execution of the project directly affect the success of the project, so the TOT project risk management is crucial.The first part of this paper expound the basic principle of the TOT financing mode and operation flow theory, analysis the strengths and weaknesses of this model on urban sewage treatment project. Subsequently, combined with engineering project life cycle theory, make recognition research in detail on the faced risks when the TOT financing model applied in urban sewage treatment project, and according to various risk specific coping strategies and concrete measures are put forward. Finally, this paper carries on the empirical analysis combined with a practical project case.