Innovative Financial Cooperation Model on Project Planning, Construction and Operation
Innovative Energy Performance Contracting
- Energy-saving benefit sharing (节能效益分享）
- Energy cost custody （能源费用托管）
- Energy saving guarantee （节能量保证）
- Financial lease （融资租赁）
- Mixed Models
Innovative Engineering Investment and Construction Collabotration
- BT （Build-Transfer)
- BOT (Build-Operate-Tranfer)
- PPP (Public Private Partnership)
- DBFO（Design-Build-Financee-Operate)
Other Models
- B2B
- B2C
Innovative Energy Performance Contracting
- Energy-saving Benefit Sharing
Provide users with funding and full-process services, and share energy-saving benefits with users in a specified proportion during the contract period. After the contract expires, all energy-saving benefits belong to the user. The key to this model lies in the allocation ratio of energy-saving benefits, which is related to project investment, contract term, and the risks of both parties. To reduce payment risks, users can provide multi-faceted guarantees for the payment of energy-saving benefits to integrated energy service providers.
- Energy Cost Custody
The user entrusts the integrated energy service provider to invest in energy system energy-saving renovations and operational management, and pays the energy custody fees as agreed. The cost savings generated by the system belong to our company. After the contract expires, all equipment is transferred to the user free of charge, and all subsequent benefits shall belong to the user. The profits of our company and the user are derived from reduced energy costs.
- Energy Saving Guarantee
The user pays service fees to our company, which provides full-process services and guarantees the green and energy-saving effects of the project. If the green emission reduction and energy savings fail to meet the committed targets, our company will bear the costs exceeding the agreed amount. If the green emission reduction and energy savings exceed the committed values, the excess benefits will be shared by both parties in proportion. After the contract expires, all emission reduction and energy-saving equipment will be transferred to the user, and all subsequent benefits shall belong to the user.
- Financial Lease
Our company is responsible for recommending financing companies and energy-saving and emission-reduction equipment providers, leasing the equipment for the user's use, and periodically charging the user lease fees. We will also renovate the user's energy system and guarantee the energy-saving and emission-reduction effects. After the contract expires, all energy-saving equipment will be transferred to the user free of charge by the financing company, and all subsequent benefits shall belong to the user
Innovative Engineering Investment and Construction Collabotration
Innovative Engineering Investment and Construction Collabotration
- BT Model（Build-Transfere ), Authorized by the government, our company is responsible for financing and constructing green energy projects under this model, and will transfer the completed projects to the government within a specified time limit. The government will make installment payments to our company for the total project investment and corresponding returns in accordance with the pre-signed buyback agreement.Key Characteristics of the BT Cooperation Model:The BT model is suitable for non-commercial government infrastructure projects. The funds utilized by the government are sourced from investors/financiers, with the government only providing a small amount of guarantee funds upfront.Our company is solely responsible for investment and construction, without participating in operations or acquiring operational revenue. The government will pay the agreed total price to the investor in installments according to a specified proportion.
- BOT (Build-Operate-Transfer),The government grants the company a “Franchise, permitting it to raise funds within a specified period to construct a certain basic energy facility, and to manage and operate the facility as well as the services it supplies. Upon the expiration of the franchise, the company shall transfer the fixed assets to the government free of charge. Key Characteristics of the BOT Model: A hybrid model combining market economy with government intervention, which ensures both the effective functioning of market mechanisms and the government's control over the project. Enables the government to reduce financial burdens and avoid significant project risks.Features a clear project rate of return, implemented strictly in accordance with the mutually forecasted and agreed-upon plan, resulting in fewer disputes over interests.
Conducive to improving project operational efficiency and facilitating the introduction of advanced technologies and management experience to the host country.
PPP（Public Privete Partnereship)
Known as the public-private partnership (PPP) model, the Company and the host government jointly mobilize private capital, committing funds and resources to the project. The Company is responsible for undertaking project planning, construction, and operation on behalf of private investors, with returns generated distributed in proportion to the contract. In addition to direct operational returns from the project, private investors can also benefit from advantages transformed through government support.
Key Characteristics of the PPP Model
- Returns can only be generated after the project is completed and approved for use by the government. This mechanism enhances engineering efficiency, reduces construction costs, and mitigates project completion risks and funding risks.
- Optimizes government functions by enabling the government to serve as both the provider of infrastructure and the supervisor of the project, thus alleviating fiscal pressures while ensuring project quality.
- Promotes diversification of investment entities, facilitating the introduction of advanced international technologies/equipment and sophisticated management expertise.
- Features reasonable risk allocation: government and private investors jointly contribute capital at the project’s initial stage, reducing risks for investors and lowering the difficulty of financing and investment.
DBFO（Design-Build-Finance-Operate)
It is a typical model under the public-private partnership (PPP) framework, whereby the government is responsible for establishing service standards and paying service fees, while the Company undertakes the cooperative model of designing, constructing, financing, and operating the corresponding facilities. Upon the expiration of the operation period, the relevant facilities shall be transferred to the government department for management.
