Research On Financial Risk Of Waste Incineration Power Generation BOT Project

Directly burning combustible domestic waste for combustion not only solves the problem of garbage disposal and disposal occupying urban space,but also brings certain economic and environmental benefits.Therefore,local governments in all parts of China are launching household waste incineration power generation projects.To solve the growing problem of garbage siege.The general demand for domestic waste incineration power generation projects is relatively large,and the entire construction and operation cycle is relatively long,and the government's current fiscal payment capacity is increasingly limited.Based on such considerations,the BOT model is currently selected for the waste incineration power plants operating or under construction.However,the development of the BOT project model in China is not long,and scholars are not very thorough in its research.Furthermore,their own domestic waste incineration and power generation BOT projects face numerous factors,complicated operation processes,and many risks.Therefore,how to do a good job of studying the financial risks of such projects is particularly important.Taking the Songyuan Municipal Solid Waste Incineration Power Project as an example,the article obtains financial data of the project by interviewing the case,and then uses qualitative analysis and quantitative analysis methods to conduct relevant discussions and research.Based on the accounting of various types of expenditures and revenues in the process of fundraising,investment,construction,and operation of the project,the profitability,sensitivity,and financial stability of the project as a whole were discussed.Through a series of risk analysis and problems,the article was summarized.The main factors influencing the financial risk of waste incineration power generation BOT projects are policy changes,poor capital structure,and doubtful project income.Based on the above studies,it proposes to control possible financial risks by improving economic policies,controlling costs and optimizing capital structure.The purpose of the article research is to point out the possible financial risks in the construction and operation of domestic waste incineration power generation projects through the discussion of this article,and to promote the healthier development of China's domestic waste treatment industry.