Study on investment return system of PPP wastewater treatment projects based on system dynamics

This paper aims to study on investment return system of public-private partnership (PPP) wastewater treatment projects based on system dynamics. On the basis of the analysis of the factors influencing the value for money (VFM) evaluation and the prediction system of the rate of return on investment, a system dynamics method is used to establish a prediction model for investment income based on VFM quantitative evaluation. The software of Vensim PLE is used to simulate the newly built PPP wastewater treatment project. Results show that the selection of discount rate and PPP project's transaction cost have significant effect on the VFM and the present value and the rate of return on investment in the franchise period. This study can be used as a reference for the fair and equitable cooperation between the government and the private business. Copyright © 2020 Inderscience Enterprises Ltd.