Research On PPP Financing Scheme Of Landscape Engineering Project

In recent years,the rapid rise of landscape enterprises is greatly slowed down due to the difficulty of obtaining loan,single fund collecting channel,large amount of capital investment,the slow return of accounts receivable and other financing problems.As a kind of financing mode,PPP mode can revitalize and absorb a large amount of social capital on the market,which can reduce composite cost for project,improve the operation efficiency as well as the quality level of infrastructure construction.Therefore,the introduction of PPP financing mode to the landscape enterprises can not only effectively solve the problem of limited financing channels,broaden the scope of the project,but also reduce the government's high investment expenditure.The landscape company,EL,Listed on the shenzhen stock exchange in 2009,actively undertake PPP projects since its business transformation in 2014.After more than two years of experience,EL has an outstanding advantage in the field of PPP financing,but also encountered problems such as first the government's equity and debt financing difficulties because of the lack of land mortgage from local government,second the difficulties in financing with the increasing of the company's external security EL pressure when local government hopes to hold shares in accordance with the shareholders of PPP for the corresponding equity and debt financing to provide guarantees,and third low enthusiasm for majority of financial institutions to involve the project financing of the less developed areas or the third and fourth-tier city which is uncompetitive in financial.Meanwhile the government still has a variety of concerns with the private enterprise cooperation Therefore,it is difficult for EL Company to carry out PPP project financing.In the above context,the method of theoretical analysis and case analysis to study the PPP project of EL Company's landscape engineering project are used in this paper.Firstly,a literature review of the current research situation for PPP financing is provided,the theory of PPP financing is explained according to the theory of corporate finance.Secondly,the advantages of EL Company's PPP financing,including the financing status of EL Company,financing environment,financial affairs and operating conditions,are analyzed in this paper.Then,a landscape engineering project from EL company is selected according to the its PPP financing problems to put forward three kinds of financing scheme,namely PPP financing fund mode,PPP financing comprehensive mode and PPP financing accounts receivable buyout mode.By comparing the financing cost,financial benefit,loan repayment period and project risk of the three schemes,the optimal financing scheme-the PPP financing accounts receivable buyout mode-is selected.Finally,put forward the implementation proposal for the scheme is put forward accordingly.The daily management of accounts receivable should be improved,asset management cooperation should be chosen reasonably,a sound project management mechanism should be established,a scientific and reasonable risk prevention mechanism should be developed,a financing relationship platform should be created and a financing plan management group should be set up to guarantee the smooth implementation of the program.The PPP financing options for other garden enterprise research provides reference.