Funding Model And Risk Analysis For New University Campus Construction

It has been 8 years since universities in China expanded their scales of student number. As a result of the reform of the education system and the following lack of education resources, construction of new college campus has been developing rapidly.The construction of new campus is enormous and complex, costing a huge number of cost and the time limit for the project lasts long. At the back of the construction of the new campus, there is the fund lacking problem, and this problem is becoming a key restriction for university development. Through the example of a university in Shandong province and the analysis of its instruction model, this thesis come to the conclusion the university can fund through bank loan. Besides, new funding model, take BOT financing pattern for example, has been adopted. With the approach of funding variously, university has funded and constructed successfully.For the first thing, it has been brought forward that university has fund lacking problem in the construction of new campus. It is an urgent task for university to construct new campus in the face of the reform of education system and the enlargement of the student scale. Through the analysis of the income source of university, such as financial appropriation, education tuition, etc. and the comparison with the huge expenditure and the long term of the construction, we can draw the conclusion that there exists severe fund lacking problem for university to construct new college campus.For the second thing, this thesis takes a university in Shandong province for example to analyze the funding resources and funding models. The funding resources are classified into two classes on the base of profitability, they are traditional funding approaches and modern funding approaches, among which there are financial appropriation, education tuition, college company, science and research fund, banking loan and interest pattern for the former and BOT project funding pattern, foundation, trust and foreign capitals for the later. We have found the appropriate funding model through the analysis of these funding resources and its combination with college characteristics. Under the situation of college incomes not satisfying its expenditure for new college construction, we can adopt banking loan for teaching buildings, office buildings, laboratories which can nor make profit and BOT project funding model for students' dormitory buildings, dining hall, bathroom buildings, stores, etc. which college can profit from them. Other resources can be adopted by university depend on different conditions, so they are not further analyzed specially.Thirdly, this thesis discussed the risks the funding models have and the measures which should be taken to prevent the risks. Banking loan has been extensively adopted by university. At present, there are some problems in the usage of it for university, such as misapplications, excessive loan amounts, inappropriate loan structure, lack of repaying consciousness, etc. As to banking loan, we designed a model to control the loan scale, reinforce the management cost, establish internal and external supervisory mechanism, etc. BOT model is being successfully used in new campus construction even though there still exist risks when it was combined with university construction, such as operating risk, investment risk, programming and management risk, market risk, etc. university can also take measures such as standardize the construct document, invite public biding, apply business insurance to assure the operate risk and foster BOT professional to raise management standard, to prevent and release the risks.