Bot Mode Of Financing In Yunnan Fu Yan Highway Projects

To solve the contradiction between the need of rapid development of the infrastructure construction and the relative shortage of infrastructure construction funds so as to promote the development of national economy with the rapid advance in the infrastructure construction, it is encouraged to solve the problem of raising funds by the means of investing jointly, cooperating, forming a partnership, exclusively owning, BOT and TOT and to invest in opening up, constructing and operating the infrastructure construction projects in our country. Though BOT financing has been applied to some infrastructure construction projects including the highway in recent years, problems still exist because of the imperfect law, improper operation and not ideal investment environment. To accelerate the infrastructure construction, the Yunnan People's government issued Decisions of the Yunnan People's Government on Accelerating the Highway Construction in 2002 and Ways of Encouraging the Construction of Roads Infrastructure Investment in 2004. As the first highway built through BOT financing in the history of Yunnan's highway construction, Fuyan superhighway has been widely concerned. The careful analysis and summation of its present application not only contributes to better construction of the rest Fuyan superhighway, but also serves as reference to better BOT financing projects in future. In addition, its experience can be drawn on to improve the infrastructure construction and to raise funds from various ways.Through the prediction of economic index, investment profit rate and capital profit rate in the Fuyan highway construction project as well as the sensitive analysis, it can be safely concluded that the internal return rate is significantly higher than the standard discount rate. In other words, BOT financing is practical in finance with the characteristics of strong financing anti-risk and reasonable project profits. All accords with the successful project basically.Through the analysis of the specific problems in the Fuyan highway construction project with BOT financing, its corresponding policies and the general BOT financing barriers in the highway construction in our country, four solutions are...