The Research On BT Model Applied In The Infrastructure Project

Infrastructure is the foundation for the development and operation of national economics and provides source of sustainable development. The financial crisis had spread all over the world in 2008, four trillion RMB investments in infrastructure have been made by Chinese government in order to cope with the crisis, with a certain achievement obtained. The infrastructure projects such as highway, port, air field, railway and so on are characterized by large-scale investment, long construction period, slow investment return and complicated capital structure. The product and service provided by infrastructure belong to public products according to traditional view, which should be invested, built and provided by government. However, if only government provides the infrastructure service, on the one hand it will face the problem of capital shortage, on the other very likely to cause a low efficiency investment, construction and management, which will make the fund shortage even worse.Due to the fund shortage and inefficient management in current infrastructure in china, the market-oriented reform is imperative. China has searched various financing modes under this situation, which include BOT mode, construction-agent system, BT mode and etc. Focusing on the problems that exist in Chinese infrastructure financing in BT mode, the definition of BT mode, applicable scope, basic features, application meaning, financing methods, operation process, risk management and detailed implementing plan for construction have been systematically expounded in this paper and a more standard and improved process is provided, that is government taking the project concession agreement as the basic ground, signing contract with qualified construction company. As the implementing body, the construction company shall conduct the agent owner management via project financing and general contracting, meanwhile responsible for construction and repurchased by government by installment payment after project completed, related government supervisory organizations, engineering consulting companies, insurance companies should also be included in the management so as to avoid risk.Finally, according the BT case analysis of Genghis Khan Avenue Project, Hohhot, Inner Mongolia, the strength of BT mode and weakness in practice has been demonstrated, related suggestions has been provided as well.