Research On Subsidy Mechanism Of Sewage Treatment Projects Under PPP Financing Mode

Recently,as the rapid development of China's economy and the continuous progress of the urbanization,the problem of sewage treatment has been referred to an important position.Sewage treatment plant,as an important public infrastructure in our country,has been faced with the problem of capital shortage and low operation efficiency.Since 1980 s,PPP financing model(Private Partnerships Public,government and social capital cooperation)has been widely used in the field of public infrastructure.The application of PPP financing model in sewage treatment industry can not only reduce the national financial pressure effectively,but also improve the operating efficiency of China's sewage treatment with the power of the market.However,according to the characteristics of China's sewage treatment industry,social capital cannot get a reasonable return on investment,so the government needs to bear a certain responsibility.Therefore,it is necessary to establish a reasonable subsidy mechanism for the development of PPP financing model to provide protection for the sewage treatment industry.Based on literature analysis,system analysis and analytic hierarchy process,this paper studies the subsidy mechanism of sewage treatment project under PPP financing mode.Firstly,this paper introduces the concept,classification and economic principle of PPP financing mode,and analyzes the concept,characteristics and economic principles of public finance subsidy.Then I focus on sewage treatment subside projects using the PPP financing model and some related issues,analysis the sewage treatment operating mode of the PPP project and illustrates the subsidy from the angle of economics,in-depth understanding of government four forms of subsidies for PPP projects of sewage treatment,and points out problems existing in the current subsidies.Secondly,I put forward the subsidy mechanism based on performance evaluation and establishes a performance evaluation system based on the construction of the performance evaluation system.Finally,I use case analysis to study the subsidy mechanism based on the performance evaluation to verify the rationality of operation performance evaluation system,and illustrates the practicability and operability of the subsidy mechanism through example analysis.This paper shows that the sewage treatment project under the PPP financing mode needs the government to carry out the subsidy.Wastewater treatment PPP project performance is mainly affected by the quality of public service,followed by operational management and financial costs,but it is necessary to emphasize thatoperational performance is lowest affected by the degree of public service satisfaction.The operating performance evaluation system constructed in this paper has strong operability.Through the analysis of A sewage treatment PPP project,the amount government subsidy to the project is lower than the amount of the reasonable subsidy.Based on the results above and the problems of existing subsidies,this paper proposes to not only improve the current subsidy mechanism and introduce third-party consulting rating agencies,but also perfect the subsidy related laws and improve the supervision system of subsidies.The research of this paper provides some ideas for the further improvement of the subsidy mechanism of sewage treatment project under the PPP financing mode,which has certain theoretical and practical significance.