Case Study On The Model Selection Of Project Financing For Biofuel Project

Recently,with the increasing prominence of global energy and environmental issues,renewable energy project gained more and more extensive attention,but the huge capital shortage restricts further development of renewable energy projects.Traditional equity financing and debt financing has higher requirements on credit status of project sponsor and are hard to meet huge capital requirement during the project construction period,therefore project financing as an emerging financing model which is based on the profitability of each specific project gradually attracts attention.In the paper,domestic and international literature and reference project documents are reviewed and compared,and features of three major project financing models are summarized after analysis of six typical reference projects,such as Chengdu VI waterworks project,Malaysia expressway project,Beijing subway line 4 project,Berlin waterworks project,Guan-shen expressway project and Huaneng Lancangjiang hydropower plant project,and then proper project financing model is finalized as ABS while combining specific features and financing requirements of A bio-fuel project.On the basis of design procedures of asset-based securities,project participants,transaction structure,asset pool,form of special entity,issuing scale,product level,product pricing,amount of each level of security and its repayment plan need to be finalized combining cash flow status of A bio-fuel project,so as to demonstrate the feasibility of application of ABS project financing model in A bio-fuel project.Hopefully,the analysis of paper can be taken as reference to determining financing model of other renewable energy project.