Research On The Impact Of Financing Costs On The Concession Period Of Hybrid Financing PPP Projects

The infrastructure construction of public service in our country has been gradually open to social capital.More and more private capital investment was put into the infrastructure construction.It is a very important issue for investors to calculate the concession period of Hybrid Financing Public-Private Partnerships(HFPPP)project.The financing cost of project has an important influence on the concession period of HFPPP project.Through the comparative analysis of various financing methods,we choose different financing methods as research object,we also put forward the calculation model of concession period based on different financing ratio using net present value method.Through a specific simulation process,it proved that this model is feasible and effective,and provides an effective way for analyzing the relationship between financing cost and the concession period of HFPPP project.The research work of this paper is as follows:(1)Analysis review.This paper analyzes and summarizes the existing literature on the concept,risk,concession period,financing mode and cost of HFPPP project.(2)Establish financing framework.Based on the analysis of the financing mode of HFPPP projects,according to the different debt and equity financing ratio social investors may use,we put forward the systematic financing framework scheme of HFPPP project.On the basis of previous studies,this paper combines the financing cost of HFPPP projects with different financing modes for the first time.We pay more attention on analyzing the influence of financing cost factors on the concession period of HFPPP project.(3)Constructing concession period calculation model.We established the calculation model about the influences of the financing cost on concession period of HFPPP project based on the investment income analysis methods and the calculation method of financing cost of different ways of financing.This model can be used to calculate the concession period for the different financing proportion of the HFPPP and the different financing methods of the social investors.(4)Simulated analysis of the calculation model.We establish the cash flow discount function through the above analysis,and we also use MATLAB software to design simulation process based on the established calculation model that can meet the requirements of government and social investment.(5)Case application.According to a heating project of a county in Qingdao,this model is used to calculate the concession period to meet the requirements of the government and social investors.The feasibility and applicability of the concession period calculation model are further verified.The above research has demonstrated that the financing cost proposed in this paper has important theoretical and practical significance for the HFPPP project.In theory,we use the net present value calculation method,proposed a concession period model considering the financing cost,and enriched the research literature,which provides a new way for further academic research on concession period.In practice,the research makes some analysis and comparison through a specific case,considering the use of different financing mode in social investment,also the study analyse the relationship between the concession period and the financing cost.This study provides a certain basis for decision-making on the different proportion of financing decision,provides a reference for the more reasonable agreement between the government and social investment,and plays an important role in promoting the implementation of HPPP projects in our country.