Research On Asset Securitization Of Humen Lvyuan PPP Project Government Paid

In recent years,the government and the social capital cooperation(PPP)mode have been developing vigorously in public industry such as municipal engineering,transportation,ecological construction and environmental protection.PPP projects have formed a huge stock of assets,but the payback period of PPP project is long,in addition,the liquidity of PPP project is low,which reduces the enthusiasm of social capital participation.The asset-backed security,one of asset securitization products,has the characteristics of term segmentation and trading in exchange,which can properly solve the two problems of the PPP project above by liquidizing the stock of assets.PPP project government paid means the government will pay for public goods or service provided by PPP project according to the usage,which can form a cash flow,what's more,the payment would be generally included in the budget of the local government.With small policy risk and stable cash flow,PPP project government paid meets the requirements of asset securitization to be the basis asset.Besides,stable cash flow also means stable returns,so the PPP project government paid can attract investors who are looking for high-quality investment target.Therefore,asset securitization can enhance the liquidity of PPP project assets,and the cash flow of PPP project also meet the conditions of asset securitization,asset securitization and PPP project can be combined perfectly.PPP project government paid asset securitization is expected to become the classic investment and financing mode in the field of public goods or service supply in the future.Combined with the successful case of the asset-backed security of Humen Lvyuan PPP project,this paper expounds the basic theory and operation process of asset securitization of the PPP project government paid,emphatically analyzes the basic asset transfer,cash flow forecast and credit enhancement in the operation process,sums up the cautions of the PPP project assets securitization,for example,make sure the basic asset of asset securitization compliance,get the duration of the asset securitization product and the operation period of the PPP project matched,what's more,the cash flow of basic asset should fully guarantee the principal and interest of asset securitization products.The policy suggestions are promoting the multi-mode development of PPP project asset securitization,bringing in and cultivating diversified market investors,consummating the trading mechanism and preventing the follow-up operation risk of PPP project.At present there are few research analyzing the cases of domestic asset securitization of PPP project and their operation process.I hope that this research can do some supplement and provide reference for the rest asset securitization of the PPP projects.