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The project of supplying water in the city is a government project about the people livelihood. But because of being deficient in capitals, the project of supplying water in our country is always in the state falling behind. For changing this situation, our country leads into the TOT kind of financing mode to resolve the difficult problem since the 80’s. Meanwhile, our country also leads into numerous social capitals to complement the funding gap.TOT financing mode for the city water supply project is successfully adopted in many cities, which solve the problems resulted from lacking of funds in the construction of infrastructure, and improve the efficiency. However, as a new financing mode, our government and private institutes do not have enough experience so as to encounter many practical problems during the application, so there are many projects which are finally postponed and stopped, such as Shanghai big field water plants, Beijing No.16 Water Plant, Lianjiang sino-french water supply plant, The eighth ninth water plant, Chengdu water resource No.6 plant, Chisan port water plant, Lingzhuang project of Veolia water in Tianjin, Xianan project of Berlin water. Many problems occur during the running of these projects, which include government default, inabilities of the managers, big difference of predicting the market, project loss caused by the fluctuating interest rate.Analyzing and summarizing the projects which have these problems, and finding out the main risk factors resulting in the failure of these projects, and paying most attention during the project practices in future, are very meaningful for our government to guide the practice of the TOT financing mode.By introducing the case of Qing drinking water program in Kunming city about the TOT kind of financing mode, this paper is deeply testing the TOT kind of financing mode for urban water supply. This has also important guiding significance to the project at the same time.Nowadays, TOT financing mode, as a new financing mode, is widely used in infrastructure construction. In past 20 years, the practices show that there are a lot of problems expected to be urgently solved. Therefore, the target directing planning method is adopted to study these problems in this paper.
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