Font Size: a A A

Application Study On BOT Financing Mode Of Chinese Water Infrastructure

Posted on:2018-06-06Degree:MasterType:Thesis
Country:ChinaCandidate:M E ZhuFull Text:PDF
GTID:2359330515491591Subject:Finance
Abstract/Summary:PDF Full Text Request
Consider having the attributes of public interest and profitability as well as the characteristics of being under long construction period and low short-term return,if water infrastructure only rely on financial support by the government,on the one hand,it would be fiscal pressure for the local government,on the other hand,it would be under the situation of lacking efficiency on construction performance and management because of deficiency of effective market supervision.Now,mechanisms and tools for investing and financing water infrastructure have been constantly improved.Such as BOT,PFI etc which have been recognized by government and society now are widely adopted.By expounding on the definition of the financing mechanism BOT,the thesis will firstly introduce the characteristics,capital,structure and operational mode of BOT,then analyze operational features and current financing situation of municipal water infrastructure in China.By elaborating the development situation of BOT,the thesis will analyze the key factors that lead to the success of BOT and its existing problems.Secondly,with overall evaluation system upon investing and financing water infrastructure which based on the property analysis of a project,the thesis will identify in what degree the infrastructure are participated in publicness and operation by applying the theory Analytic Hierarchy Process,and will provide the appropriate decisive basis for the water infrastructure whether to adopt market mechanisms and tools for investing and financing or to accept the construction capital fully supported by the government.Thirdly,by utilizing Principal-agent Theory and VNM Utility Function,the thesis will theoratically discuss the cost structure of water infrastructure in launch phase and operational phase.Fourthly,take BOT financing on dealing with waste water in an anonymous city as a case study,analyze with the evaluation model,evaluate the project value by a growth option model,identify the franchising period under the profitable situation,discuss if it is proper for infrastructure to be financed through BOT and if it is profitable for the investing entities.The thesis have conducted an overall discussion on flexibility of the infrastructure project based on empirical research,and elaborated how BOT financing mode works,hence make out some proactive measures.
Keywords/Search Tags:Financing Mechanism BOT, Capital Structure, Analytic Hierarchy Process, Growth Option, Water Infrastructure
PDF Full Text Request
Related items