Research On Investment Decision Of PPP Project Of Sewage Treatment Based On Real Options

The essence of Public-Private Partnership is a form of institutional arrangement that gives full play to the advantages of government and social capital and makes them cooperate with each other.Since 2014,the national development and reform commission,ministry of finance and other ministries issued a series of policies and regulations,quickly get our government attaches great importance to the PPP mode,its policy dynamics of the big,wide coverage of unprecedented,subsequently,a series of issues related to the PPP project investment decision-making also received widespread attention.Sewage disposal PPP project is the government and social capital cooperation pattern in the specific application of sewage treatment industry,through franchise agreements,social capital from the government department in sewage treatment projects of franchise,during the charter period,the social capital investment returns through operating the project company.When the franchise agreement expires,investors should hand over the project company to the government.With the advancement of urbanization and industrialization in our country,the sewage treatment project construction are increasingly brought to the attention of the social public and the government departments,especially in July 2017,the ministry of finance,such as three ministries jointly issued "about government involvement in sewage and garbage disposal project notice the full implementation of the PPP mode",document calls for the government to participate in the full implementation of wastewater treatment project of PPP mode.In this context,we need to solve the problem of investment decision method of sewage treatment PPP project.In this paper,on the basis of predecessors' research results,related theory of the PPP project investment decision-making and the sewage treatment industry has carried on the thorough analysis,and demonstrates the real option method in wastewater treatment of the PPP project investment decision-making method,further based on real option sewage treatment of the PPP project investment decision-making mathematical model.At first,this article for sewage treatment the PPP project parties numerous,large investment,long concession period,strong uncertainty,the characteristics of the system are summarized the main factors influencing the sewage treatment the PPP project investment decision-making,and all kinds of risks of the project has made a detailed analysis,then further to identify the real option types that exist in the project implementation;Secondly,this paper analyzes the traditional decision-making model in investment decision evaluation,and establishes an investment evaluation model from the perspective of real options by introducing real option theory.Finally,this paper application of real options under the perspective of sewage treatment the PPP project investment decision-making evaluation model for evaluating and analyzing the PPP project in baotou sewage treatment by traditional investment decision-making method and real options method are calculated respectively,further proof that the limitations of traditional decision-making model,also demonstrates the validity of the real option method,for the model in the field of sewage disposal PPP project decision-making assessment provides the reference of promotion.