A Case Study On Asset Securitization Financing Of Public-Private Partnership Project For Sewage Treatment

In recent years,the process of urbanization is continuously being accelerated in China,however,urban water demand and sewage treatment capacity are difficult to be developed simultaneously,which means higher requirements towards urban water system and water environment planning should be put forward urgently.Nowadays,the investment of sewage treatment PPP project requires high capital and long cycle,which makes it difficult for traditional financing ways to meet these requirements.At present,an innovative financing method,saying asset securitization,is graduately applied in sewage treatment PPP project.However,there exists some questions which should be thought carefully,such as how to design and carry out sewage treatment PPP project,which points we should pay attention to in securitization and which points can be improved in implementation process.In this paper,a typical case named “Beijing Capital sewage treatment PPP project fee income rights asset support special plan” is taken for example,a comprehensive analyzation is made on the design and implementation details of PPP project,including scale and structure of the products,the formation of the asset pool,main parts in participation,credit enhancement rating and products financing cost.This paper enables readers to have clearer and more comprehensive understandings toward securitized products of sewage treatment PPP project,make social capital have more enthusiasm in participation,and provide references for more efficient operation of asset securitization in PPP project in the future.It is hoped that through the research of this project,more problems in the promotion of PPP securitization financing mode will be solved,and effective advices will be provided for asset securitization in the projects similar to PPP in the future.