Quantitative Assessment On Value For Money For Sewage Disposal PPP Project

China’s economy has experienced rapid growth for decades.During this time,the urbanization and industrialization in China has improved continuously,the demand for water resources is increasing rapidly.At the same time,a large number of untreated industrial wastewater and domestic sewage are discharged which lead to serious water pollution,this problem has already aroused the attention of more and more people.The demand for sewage disposal infrastructure is increasing rapidly.Due to the shortage of government financial funds,the demand can not be fully met in the short term.In order to provide better sewage disposal service as soon as possible.PPP mode which can introduce social capital to the field of infrastructure investment is prefered by government in nowadays.However,as the same as other procurement mode,PPP model has its applicable conditions,the government can not only rely on its subjective preferences to select the purchasing mode,there should be a scientific quantitative basis to judge whether the VFM could come true or not if PPP mode was adoped in the infrastructure construction fields.The main purpose of this paper is combined with present situation of sewage disposal industry in China,to show the problems we have to faced if we adopt traditional government procurement mode to provide sewage disposal services.and how to solve these problems through the PPP mode.On the basis of them,to construct the VFM quantitative evaluation model for PPP project of sewage disposal in China.During the process of construction of the mode,firstly,we analyses the basic theory and application of the VFM quantitative evaluation model for the PPP project.Based on the analysis of the basic operation mode and main characteristics of China’s sewage disposal PPP projects,to propose the framework of VFM quantitative evaluation mode for the PPP project of sewage disposal.Then put forward the two parts of the mode.the comprise of Public Sector Comparator,PPP value,and their calculation mode.so as to constitute a completely VFM quantitative evaluation model of PPP project of sewage disposal.Then we should apply this model to the practice of Xinjiang Moyu county’s sewage disposal project.For the specific project,the VFM quantitative evaluation model will be influenced by many factors.,this paper makes a concrete analysis of several basic factors which can affect the evaluation results: the determination of the discount rate and the risk analysis.In order to get the reasonable discount rate,we should analysis the characteristics of discount rate which was commonly used in foreign’s VFM quantitative evaluation mode,and combine with the characteristics of the PPP project for sewage disposal to select the appropriate interest rate as the discount rate;for the part of risk analysis,through the literature survey and WBS-RBS method,we can identify 18 kinds of risk factors of the PPP project of sewage disposal,and complete the risk’s quantized analysis,then introduced set-valued statistics to quantify risk and put forward risk sharing principle of sewage disposal PPP projects as theoretical foundations of risk sharing.,and then combine with the literature and data of Xinjiang Moyu countyis sewage disposal project to make empirical research,to validate the applicability and feasibility of the VFM quantitative evaluationmodel.and provide scientific quantization basis for the selection of PPP project of sewage disposal,At the same time,it provides a scientific theoretical basis for the promotion of PPP mode in different fields and different project types.