The Research On The Financing Model For PPP For The Energy Project In Africa For The Chinese Engineering Contracting Company

On the one hand,the Chinese government encourages Chinese enterprises to "go out" and provides Chinese enterprises with policy,financial and technological support as China’s economic strength continues to strengthen and international dominance grows.On the other hand,faced with the shrinking domestic project contracting market and the global economic downturn,and the increasing competition in the overseas project market,Chinese project contracting enterprises are faced with the dual challenges of improving the construction technology level and the ability of investment and financing.In this case,the power of Chinese financial institutions,become the Chinese engineering contracting enterprises towards Africa is strong backing,so,how to make good use of China’s go out policy dividend,realize the industry transfer of China construction enterprises,industrial upgrading,from project contracting enterprise to project developers,investors,is the current hot topic.In this paper,the model of Chinese project contracting enterprises participating in African power project investment and financing is studied.First of all,the paper explains the traditional modes and innovative ways of project investment and financing,especially the main financial products of China’s export credit and export credit agency,and analyzes the difficulties and characteristics of Chinese enterprises’ participation in African power projects,providing the basis for the following research.Secondly,the thesis from the project-host country economic development level,the international credit rating situation,economic and technical feasibility of the project itself,key agreement(power purchase agreement,project implementation,a franchise agreement,etc.),and participate in the project implementation of the development of the Chinese engineering contracting enterprises to analyze the factors such as its strength,it is concluded that the above factors has a crucial influence to the project development.Subsequently,this paper discusses the financing framework design method of Chinese engineering contractors to participate in African power projects.Based on the situation of backward and developing countries in Africa and the advantages of Chinese engineering enterprises,the basic principles and matters needing attention of the design are obtained.In particular,the project guarantee model,equity ratio,financing rate and other key factors were emphasized.The idea of incorporating the initial investment into the EPC amount is put forward,so as to recover the investment cost in advance when the project is completed.Finally,the paper conducts an empirical analysis based on the theoretical research results,conducts an example analysis of the above conclusions in the Zambia C coal-electricity integration project,presents relevant data and practical results,and demonstrates the application of the conclusions in the practical and more complex African power projects,demonstrating its universality and extensibility.It provides a path and reference for Chinese project contractors to participate in the investment and financing of African power projects.