The Pricing Model For PPP Waste-to-energy Incineration Projectsin China

In the process of urbanization,the amount of waste generated in the urban life is increasing day by day with the increasing of population in our country.How to deal with municipal solid waste is a thorny problem in many cities.In order to build the environmentally friendly,resource-saving society,we must search for an effective way to treat the waste harmlessly.The WTE Incineration technology can be used to protect environment,and to save energy at the same time.WTE Incineration technology is of great significance for improving the environment,saving resources and realizing the sustainable development of the city.It will be the main way of future waste disposal.If the PPP model would been applied to WTE incineration projects and the social capital would allowed to participate in the construction and operation of waste disposal infrastructure,it can be help to treat the waste harmlessly and solve the financial pressure of the government process at the same time.Due to the pricing of garbage disposal fee is the key to the successful operation of PPP WTE incineration project,this paper studies the pricing model based on the related factorsFactors affecting the pricing of garbage disposal fees in PPP WTE incineration projects can be divided into two types.The first type is the parameter that can be quantified,such as cash inflow and outflow.In this paper,we summarize the financial data of specific cases.Based on the first class of parameters that can be quantified,this paper starts from the theory of net present value and adopts the method of system dynamics to establish the pricing model of the waste disposal fee of PPP WTE incineration projects with the help of Vensim software.Finally,the validity of the model is verified by an actual case.The second type is the non-quantifiable factors,such as the risk factor.In this paper,we identify the risk factors of PPP WTE incineration project through the study of 45 projects,and supplement the risk factors through combine expert opinion and theoretical literature.Finally,we obtain a list of 27 risk factors and the risk decomposition structure of PPP WTE incineration project is obtained by using RBSmethod.Based on second types of non-quantifiable parameters,this paper draw on the relevant research results of the PPP project concession pricing adjustment form experts' existing research findings to establish the price adjustment mechanism of the PPP WTE incineration project.Based on the successful experience of the past similar PPP WTE incineration projects,we use the data of the price data of the garbage disposal fee form the past projects to adjust the initial pricing of the target project,so as to determine the final price.With the help of the pricing model in this paper,the social capital and the government department can make the negotiation and signing work of PPP waste incineration project easier.It is helpful to promote the development and popularization of the WTE incineration project based on PPP investment and financing mode.