In order to further stimulate the vitality of privately-funded investment and promote sustained and healthy economic development, the government vigorously promotes the PPP model and especially encourages social capital to enter the infrastructure and service areas. By the end of 2016, a total of 11260 PPP（Public-private partnership）projects were put in storage nationwide, with a total investment of 13.5 trillion yuan.Among them, Among them, the contracting rate of PPP projects in the ecological construction and environmental protection industries is at the forefront of the PPP projects in various industries, of which urban sewage treatment projects have received much attention. There are many uncertainties regarding the disposal price of municipal wastewater PPP projects, which will affect the initial rationality of government subsidies for sewage treatment. In this paper, we use the sensitivity analysis method to analyze the various factors that affect the contract price of PPP and propose a dynamic price adjustment model. Taking a sewage treatment plant in Shanghai as an example for case analysis, and expect to provide ideas and countermeasures for establishing an effective dynamic price adjustment mechanism for PPP projects.
Price：Theory ＆ Practice
Dynamic pricing model