The Research On Financing Modes For Constructing Passenger Stations

The financial deficit caused by the hard mission and financing difficulties in developing highway passenger stations has become the restrictive factor for construction of highway passenger stations. In China, the financing difficulties lie in inappropriateness of financing modes because of vague understanding about the economic properties of passenger stations. To rediscover the economic properties and take different financing modes according to different properties of passenger stations is critical to resolving finance problems of our highway passenger stations.Some people claim that passenger stations can only be supplied by governments on schedule and be financed by the single mode from the governments because of their pure social welfare. These viewpoints and actions are lopsided. The system of passenger stations encompasses four concrete types of stations with different economic properties and supplying mechanism. These concrete types can be absolutely private stations supported by markets, government-supplied stations with the highest degree in their public belonging properties, or stations with a higher degree in their public belonging properties supplied by both plans and markets. Accordingly, the adaptable financing modes to different types of stations can be:â‘ Stations financed by government can choose government-financed and government-run mode, O&M mode, or DBO mode.â‘¡Stations financed by both government and privates can adopt domestic-funded or joint-funded BOT mode or the ABS mode.â‘¢New project companies in the stations financed by privates and subsidized by government can take domestic-funded or joint-funded BOT mode, DBFO mode or ABS mode.â‘£Stations financed by privates can adopt BOO financing mode. And the attraction models of financing based on profits and risks can enhance operability of the proper financing mode.Therefore, when constructing highway passenger stations in China, we should take different financing modes according to different properties of passenger stations and finance with the help of an effective application of attraction models in order to solve the finance problems of our highway passenger stations.