Several implementation modes of the hottest photov

Several modes of PV project implementation

large and small engineering projects such as PV projects can be divided into various modes according to the different positions of investors, construction units and other project participants in project management, such as DBB, EPC, BOT, BT, EMC, PPP, etc. The following table shows several common implementations

how to carry out the above modes? What are the advantages and disadvantages

I. public private partnership

that is, public private partnership

refers to the cooperation between the government and private organizations in the construction of urban infrastructure projects. Or to provide some public goods and services, based on the concession agreement, form a partnership between them, and clarify the rights and obligations of both parties by signing a contract, so as to ensure the smooth completion of the cooperation, and finally make the cooperative parties achieve more favorable results than expected by acting alone

its typical structure is: government departments or local governments sign a concession contract with the special purpose company formed by the bid winner through government procurement, and the special purpose company is responsible for financing, construction and operation. The government usually reaches a direct agreement with the financial institution providing the loan. This agreement is not an agreement to guarantee the project, but an agreement to promise the lending institution that it will pay the relevant fees according to the contract signed with the special purpose company. This agreement enables the special purpose company to obtain the loan from the financial institution more smoothly

the essence of this form of financing is that the government gives private companies long-term franchise rights and usufruct in exchange for accelerating the construction and effective operation of infrastructure

first, PPP is a new project financing mode

second, PPP financing mode can enable private capital to participate more in projects to improve efficiency and reduce risks

third, PPP mode can ensure that private capital is "profitable" to a certain extent

fourth, PPP mode improves the service quality of infrastructure construction on the premise of reducing the investment burden and risks of the government in the initial construction

advantages

1) eliminate cost overruns. In the initial stage, the public sector and private enterprises need to carry out intracranial buried electrodes to further analyze the construction process of cortical EEG enterprises and the government participating in the project identification, feasibility study, facilities and financing, ensuring the technical and economic feasibility of the project, shortening the preliminary work cycle and reducing the project cost

2) it is conducive to the transformation of government functions and the reduction of financial burden. The government can get out of the heavy business, from the past provider of infrastructure public services to a regulatory role that meets a series of relevant experimental standards, so as to ensure quality, and also reduce the pressure on the government in terms of budget

3) promote the diversification of investment subjects. Using the private sector to provide assets and services can provide more funds and skills for government departments, and promote the reform of the investment and financing system. At the same time, the participation of the private sector in the project can also promote innovation in project design, construction, facility management process, etc., improve work efficiency, and disseminate the best management concepts and experience

4) government departments and non-governmental departments can learn from each other, give full play to the respective advantages of government public institutions and private institutions, and make up for each other's shortcomings. Both sides can form mutually beneficial long-term goals and provide high-quality services to the public at the most effective cost

5) make all parties involved in the project integrate to form a strategic alliance, which plays a key role in coordinating the different interests of all parties

6) reasonable risk allocation. Different from bot and other modes, PPP can realize risk allocation at the initial stage of the project. At the same time, because the government shares part of the risks, the risk allocation is more reasonable, which reduces the risks of contractors and investors, thus reducing the difficulty of financing and improving the possibility of successful project financing. While sharing risks, the government also has a certain degree of control

7) it has a wide range of applications. This model breaks through the current restrictions on the introduction of private enterprises to participate in public infrastructure projects, and can be applied to various municipal utilities such as urban heating, roads, railways, airports, hospitals, schools, etc

disadvantages

1) lead to higher financing costs for private institutions

2) the widely adopted franchise system may lead to monopoly

3) the complex transaction structure of the project may reduce efficiency

4) long-term contracts lack sufficient flexibility

5) the cost of public use of public goods/services may increase on the surface

second, the traditional project management mode

is the design bid build mode

this management mode is the most common in the world. This mode is used in World Bank, ADB loan projects and projects based on the contract conditions of the International Federation of Consulting Engineers (FIDIC). The most prominent feature is that it emphasizes that the implementation of engineering projects must be carried out in the sequence of design, bidding and construction, and only after the end of one stage can another begin. In the DBB mode, the main three parties involved in the project are the owner, architect/Engineer and contractor

advantages

strong versatility; Free choice of consulting, design and supervision parties; All parties are familiar with the standard contract text, which is conducive to contract management, risk management and investment reduction

if there is a scratch, polish the defect with a fine oilstone

the project should be handed over to the owner after three links of planning, design and construction, and the project cycle is long; The owner has high management costs and large initial investment; Changes are likely to cause more claims

III. EPC mode

that is, the mode of "engineering, procurement and construction"

when adopting this mode, the owner selects the EPC general contractor based on the total price contract when bidding and signing the contract. The EPC general contractor is responsible for the total cost of the whole project. It can design by itself or select a design company for technical design, and then choose subcontractors and equipment and material suppliers in the form of bidding. It can also make full use of its own design and construction ability to complete most of the design and construction work, The general contracting enterprise shall be fully responsible for the quality, safety, construction period and cost of the contracted project. In the field of engineering construction, EPC essentially refers to the integration of design and construction (i.e. d+b), which is commonly referred to as general contracting

advantages

1) EPC contractor is always in the core position in the process of project implementation. EPC mode brings opportunities for the Contractor's main Jinan testing machine factory to teach you to judge the dynamic operation of testing machine fixtures, but also makes it face more severe challenges, because the contractor needs to bear more risks

2) the owner is easy to manage the project. Due to the whole design and project implementation, the contract management of the owner in the process of project implementation is undertaken by the contractor. Therefore, the management is relatively simple for the owner, which greatly reduces the workload of the owner

3) the owner only needs to invite bids once, and there is no need to invite bids for design and construction separately, which reduces the cost of bidding and greatly reduces the management and coordination work of the owner

4) since design and construction are one unit, it is possible to carry out conditional design and construction at the same time, and the engineering changes will be correspondingly reduced, with a shorter construction period

disadvantages

1) the owner's rights will be more restricted. The EPC contractor has the freedom to work in the way he chooses, while the owner only has limited control over the Contractor's work and should not intervene in general

2) the contractor pursues the maximum economic benefits. If the owner does not specify in detail in the bidding documents, it may affect the expected quality of the project

IV. Build Operate Transfer Mode

that is, build operate transfer mode

bot is a project management method that relies on private capital to finance and build government infrastructure construction projects, or privatization of state-owned infrastructure projects, which rose abroad in the 1980s. The government opens the domestic infrastructure construction and operation market, authorizes the project company to be responsible for financing and organizational construction, and is responsible for operation and repayment of loans after completion. After the expiration of the agreement, it will be handed over to the government free of charge

advantages

it does not increase the external debt burden of the host country, but also solves the problem of insufficient infrastructure and construction funds

disadvantages

the project sponsor must have strong economic strength (large consortium), and the prequalification and bidding procedures are complex

v. construction transfer mode

that is, build transfer mode

bt is a form of BOT transformation. The government introduces foreign funds or private funds to carry out infrastructure construction exclusively belonging to the government through a concession agreement. After the infrastructure construction is completed, the relevant rights of the project facilities are redeemed by the government according to the agreement. Now it also refers to that after the operation of a project passes the general contracting of the project management company, the contractor advances money for construction, and then hand over to the project owner after the completion of construction acceptance

advantages

entrusting the project to a professional company can solve the problems of the government's lack of experience and staff in a professional field, and improve work efficiency

disadvantages

1) the project construction cost is too large. 2) Financing supervision is difficult. 3) The subcontracting of BT project is serious. 4) BT project quality cannot be guaranteed

VI. contract energy management mode

that is, energy management contract (contract energy management mode)

by signing energy-saving service contracts with customers, energy-saving service companies provide customers with a complete set of energy-saving services, including energy audit, project design, project financing, equipment procurement, engineering construction, equipment installation and commissioning, personnel training, energy conservation confirmation and assurance, and a business operation mode that recovers investment and profits from the energy-saving benefits obtained by customers after energy-saving transformation. Contract energy management is a service mechanism widely implemented in developed countries, which uses market means to promote energy conservation

advantages

energy saving service companies sign energy management contracts with users, provide users with energy-saving diagnosis, financing, transformation and other services, and recover investment and obtain reasonable profits in the way of energy-saving benefit sharing, which can greatly reduce the capital and technical risks of energy-saving transformation of energy-saving units, and fully mobilize the enthusiasm of energy-saving transformation of energy-saving units

disadvantages

1) because energy-saving service companies bear most of the risks, some energy using enterprises deliberately delay payment or even do not pay energy-saving share profits for various reasons, which has hit the enthusiasm of energy-saving service companies

2) due to the lack of an independent third party to evaluate the energy savings of the project, users and energy-saving service companies have different opinions on the energy-saving effect, and the lack of energy-saving service standards will lead to mutual wrangling when paying fees