Research On The Off-balance-sheet Equity Financing Of PPP Project Company

In recent years,PPP model is widely used in infrastructure as the main model of infrastructure construction of local governments.When central enterprises of construction participating in investment and construction of the PPP project,they focus on the linkage of investment and construction,that is to undertake the general contract while investing the project,and to provide guarantee to fulfill the agreement on time by their capital strength and construction capacity.Except for a small amount of contribution from the government,the capital of PPP project is contributed by the social capital party who wins the bid.Therefore,the PPP project company jointly founded by the two parties will be incorporated into the scope of financial statement consolidation of the central enterprises.With the increase of the PPP projects won by central enterprises year by year,more and more project liabilities have been merged by central enterprises.In order to reduce the impact of central enterprises consolidating PPP project company on asset-liability ratios and interest-bearing liabilities,how PPP project company withdraw from the scope of consolidated statements of central enterprises through equity financing shall be the significant issue they are facing now.In this dissertation,we present the PPP project and related financing theories to summarize major ways of equity financing.Thereafter,according to the judgement standards of business merger in accounting principles,we analyze how PPP project company can withdraw from the scope of parent company merger from perspectives of management dominance,variable return and variable return influence,and propose the methods of equity financing that can achieve it.After that,we take the BS bridge project as an example,the project company’s being off-balance-sheet as the target layer,and the factors that the project company need to consider for equity financing strategies as the criterion layer,combine the three kinds of equity financing methods that can be listed to construct the analytic hierarchy process model,select the optimal equity financing method by taking the calculation of the relative weight and comprehensive weight as the basis of financing decision.Finally,we combine return on the investment of BS bridge project to further design a equity financing plan that not only meets the demand of being off-balance-sheet,but also guarantee the income of investors.This plan will help the BS bridge project company with the goal of being off-balance-sheet by equity financing,solve the problem of project capital contribution,and provide a certain of references and examples for other similar projects.