Research On Investment Decision Of PPP Project In Sponge City On Guangming New Area Project Of Shenzhen Water Group

Since the 1980 s,PPP(public-private joint venture)as a new project financing mode has been rapidly used and developed in various public facilities construction fields.On the one hand,PPP model can provide new investment fields for social capital,on the other hand,it can also reduce the pressure on the government’s financial expenditure,optimize the standards of social public services and infrastructure construction,and achieve win-win results for the public,government departments and enterprises.At present,in terms of public services and urban infrastructure,local governments in China generally have obvious gaps and financial pressure.The widespread implementation of PPP model has great potential and important significance.As an integral part of the construction of social public service facilities in China,sponge city construction is one of the areas where the government and social capital cooperate.With the continuous improvement of the standards of ecological environment governance in China,using PPP mode to introduce social capital to participate in the construction of sponge city is the best way to solve the problems of low quality of public service,low efficiency of social management and insufficient funds for infrastructure construction.The main purpose of enterprise investment in sponge city PPP project is to obtain reasonable expected return.However,due to the diversity of risk factors of sponge city PPP project,as well as the long-term and complexity of the project,how to prevent the risk of the project and accurately analyze and judge the investment value of the project are the primary concerns of enterprises when making investment decisions for sponge city PPP project Question.From the standpoint and perspective of enterprises,this paper focuses on the research of risk and investment decision of sponge City PPP project,taking the sponge City PPP project of Guangming New Area of deepwater group as an example.First of all,it analyzes the investment income of the initial prediction and the actual operation of the project.Through the combination of quantitative and qualitative methods,it identifies and evaluates the key risk factors that affect the investment return of the sponge City PPP project in Guangming New Area.Combined with the actual situation of the project and the principle of risk sharing,it points out the main risk factors that enterprises should focus on.Secondly,by using CAPM and WACC calculation model,the benchmark yield level R of sponge city industry is calculated.Finally,using Monte Carlo simulation,the paper analyzes the impact of different risk factors on the IRR of project investment,and finally the industry benchmark IRR.By comparison,the boundary conditions of the feasibility of investment projects are calculated,which can provide reference for enterprises in the process of investment decision-making,business negotiation with government departments and project operation management.