The Quantitatively Evaluated Study Of Value For Money In Sewage Treatment Plant's PPP Project

With the ongoing development of Chinese economy and the accelerating process of urbanization,the PPP model has become the main way to construct and operate sewage treatment plants.The PPP model helps to lower the local government's debt risk,reduce local debt and take full advantage of social capital,and it is able to achieve "win-win" or even "Multi-win" situation.Current Chinese policies have specified that the PPP project must perform a quantitative evaluation in its identification process to make sure that it can share higher efficiency,outcome and lower cost when compared with the traditional government mode.In the document of Guidelines for Evaluating Value for Money issued by the Ministry of Finance of PRC,we cannot figure out whether the quantitative evaluating method it concludes can present an accurate and comprehensive evaluation of sewage treatment plant's PPP project.The key problems lie in the quantitative evaluation of VFM in sewage treatment plant's PPP project is how to accurately quantify and share the risk,and how to choose the proper method?The blankness of a complete and well-rounded evaluation system has become an urgent problem in the development of sewage treatment plant's PPP project in China.This paper starts from the understanding of the evaluation method and content of Guidelines for Evaluating Value for Money,the latest document issued by the Ministry of Finance of PRC,and the author adopts literature research,quantitative analysis method and case analysis method,aiming to build a model for quantitative evaluation of VFM in sewage treatment plant's PPP project.Specific researching items are as follows:(1)To discuss the quantitative evaluation of VFM for sewage treatment plant's PPP project's key points and lay a foundation to the further study from the theoretical basis,methods and steps of the value of quantitative evaluation.(2)To analyze the composition of the PSC which includes the initial PSC figure,the adjusted value of government's competitive neutrality,risk quantitative and sharing based on the characteristics of the sewage treatment plant.The quantification and sharing of the risk,as the key point in it,the using of AHP and Set-Valued Statistics for quantification and sharing of the risk factors,can make sewage treatment plant's PSC more accurate.(3)To ensure the PSC and PPP of the sewage treatment plant based on the present cost of the project.And then the model and result of the quantitative evaluation of VFM in sewage treatment plant's PPP project can be constructed.The paper introduced into the case of the second phase engineering of sewage treatment plant's PPP project in Danling,Meishan and put the quantitative evaluation model for sewage treatment plant's PPP project conceived in this paper into practice.The results show positive and valuable which confirm the operability of the model is verified.