The Analysis Of Investment And Financing Of Sewage Treatment Industry Based On PPP Model

With the further acceleration of economic development, water pollution problem is increasingly serious. All kinds of water pollution incidents occurred frequently. At present, The load of industrial, agricultural and domestic water pollution discharge is very large, which is far exceeding the environmental capacity. While industrial layout is not reasonable, which leads to the frequent occurrence of unexpected water environment.On April 16,2015, the State Council issued a timely regulation to prevent and control water pollution prevention action plan, which is ten official releasing water, "Water ten" emphasizes the role of economic leverage, and also put forward to strengthen the role of public participation and social supervision, and promote a series of reform initiatives, the development of environmental protection market, to attract social capital into the sewage treatment industry. According to the relevant estimates, by year 2020, the completion of the water ten corresponding to the need to investment about 4000-5000 billion yuan, of which nearly 2000 billion yuan will be needed in the coming three years. Local government needs about 1500 billion yuan at all levels of investment. These huge investments will undoubtedly increase the financial expenses, and bring huge pressure on the government funds. So attracting social capital into the sewage treatment industry is particularly necessary. In the increasingly serious environmental governance demanding and local government stretching, the financial dilemma of the contradiction, especially in the field of sewage treatment, "PPP" model becomes the best way to solve these problems.In this paper, with the theory of PPP, using a water company as an example, the financing mode is analyzed. The PPP model of the wastewater treatment industry in China is helpful to attract social capital, reduce the financial pressure, improve the investment, construction and operation efficiency of sewage treatment. Under the new normal, with the application of PPP mode in sewage treatment industry to actively explore the operating mechanism, which is conducive to the maturity of the area along the way and the rapid success of the winter Olympics. Sewage treatment is a public interest industry and public service project, At present, we need further improve the PPP model, so that the investment return rate of social capital becomes reasonable, which can maintain investment appeal, and also enhance corporate social responsibility to win good reputation, the enterprises can add an intangible asset, even improve enterprises'sustainable development, increase business value and get more social wealth for future generations.