The Optimization Of Social Capital Application In A City Sewage Treatment Plant PPP Project

As a realistic article,the purpose of the research is to promote the development of TOT,which is one sort of PPP mode,and solve some problems that may happen.The article uses the method of case and inductive analysis to analyze the financing structure and profitability of PPP project systematically.The article explains the reason why A city take PPP mode in the project and how the project bring a win-win situation between the government and the company.Furthermore,it summarizes the problems in the project progress,and proposes corresponding solutions and policies to promote social capitals participate in PPP projects.PPP mode has lots of methods in different context.TOT mode arises under the background of China's large stock assets,and it develops from BOT(Build-OperateTransfer)mode.TOT does not require social capital to build a project,instead,it takes over the completed project from the government,and then be responsible for operation and management.In this paper,SPV,which is set up by A government and S Water Group,acquires the management of A City Sewage Treatment Plant and considerable profits.As consumers,citizens pays sewage treatment fee which is included in water bill as well.ICBC branch provide a 25 years loan which is same as the concession duration.The source of repayment is fully guaranteed by the sewage treatment fee.At the same time,the government activates its stock assets,gets 0.6 billion and improve the capital structure of A city sewage treatment industry.In the project,the significance of TOT is fully reflected.For the problems in this paper,we propose some countermeasures and suggestions: First,we should avoid unwise PPP investment which is generated by political achievements.Second,we should improve legislation and set up a supervision system to ensure the people's right to know,the transparency of information and people's participation.Third,actively carry out the asset securitization and so on.