Study On The Selection Of Equity Structure Of Energy-based PPP Projects From The Perspective Of Sustainable Development

As an effective project operation model,Public-Private-Partnership(PPPs)are used worldwide to fill the gap between the surge in public project demand and the shrinking of public fiscal budgets.In China,the operation mode of PPP projects is applied to various aspects of urban construction under the government’s call.However,the successful implementation of large-scale PPP projects is hampered by huge capital investment and high uncertainty,and capital is the key to the standardized operation of PPP projects.The shareholding structure is an important part of the PPP governance mechanism,which is of great significance to ensure sufficient funds for the project life cycle and achieve the project’s expected results.In the context of promoting sustainable development globally,by studying the equity structure of PPP projects from a sustainable perspective,it not only ensure the current funding requirements,but also focus on the stable operation of the entire life cycle of the project.And it also helps the project to achieve a more balanced performance in economic,social and environmental terms.Therefore,this paper makes the following explorations around this issue:First,based on literature research,this paper analyzes the ownership of the public sector and social capital and the interests of both parties in the equity structure of the energy PPP project in detail.Secondly,combined with the principle of sustainable development,this paper determines that the connotation of sustainable development of energy PPP projects is to achieve a more balanced project benefit in the economic,social and environmental aspects of the project.Based on the equity structure,corporate governance and stakeholder theory,a comprehensive application of game theory has determined the theoretical relationship between the PPP project’s economic,social and environmental interests and the project’s equity structure.On this basis,the specific performance of the energy PPP project in the economic,social and environmental aspects and its relationship with the equity structure from the perspective of sustainable development are quantitatively reflected in a model,combining the economic benefits of the project,constraints on equity structure and debt service level,a multi-objective programming model based on genetic algorithm is established,and the equity structure and debt level of the project were optimized at the same time.Through the example of Qixian domestic waste incineration power generation project in Kaifeng City,Henan Province,the rationality and practicability of the model are verified.In this paper,the economic,social,and environmental performance of the PPP project is established through theoretical analysis and experience summarization to establish a quantitative relationship with the equity structure,and then establishes a multi-objective programming model to optimize the equity structure.Theoretically,it has realized the scientific choice of realizing the equity structure of PPP projects from a new perspective,which is helpful to implement the general trend of sustainable development in the research of PPP projects.In practice,enhancing the sustainability considerations of PPP projects will help the public and private sectors to effectively negotiate the equity structure of PPP projects.