Research On The Pattern Of Urban Infrastructures Investment And Financing

In the process of urbanization, the supply of enough urban infrastructures is vitally important. Capital play a critical role in the supply of these infrastructures. Traditionally, municipal government provides most of the capita needed in supplying these infrastuctures. Government alone can not suffice the need for capital. In order to acquire enough capital for the development of infrastuctures, the municipal govrenment must design a new investment-financing pattern for urban infrastructures development.This new investment-financing pattern consists of three strata, namely, the stratum of municipal government, the statum of the urban infrastructures investment company, and the stratum of the infrastructures project. To achieve a sustained development of urban infrastructures, each participant in urban infrastructures investment-financing activities should perform proper functions in the right way. The municipal government should endeavor to build a favorable legal and policy environment for investment in this area. Besides its environment building funcion, the municipal government must optimize urban planning and infrastructures constuction planning so as to exert active influence at the very beginning on the construction cost of certain infrastructures projects. The municipal govrenment must also invest directly in some infrastructures that have been sorted into public goods in economics. Finally, the municipal government should take proper measures to adjust the externality associated with certain infrastuctures, to transfer the external benefit of those infrastructures into the infrastructures projest itelf. The urban infrastructures investment company must optmize its organization and management mechanism in order to accomplish its mission to word as the platform for the government to finance infrastructures development. On the third statum, that is the statum of infrastructures project, the urban infrastuctures investment company must divide infrastructures project into three gennral categories, those don't incur any incoming cash flow, those do have incomgin cash flow but can't realize financial balance, and those have enough incoming cash flow and can make some profit. The urban infrastructures investment company should adopt different financing method for the three kinds of urban infrastuctures projects.