Research On The Operation Of BT Model

BT model has gradually become an effective financing model for the government to use non-governmental funds to carry out non-profit infrastructure construction projects and make up capital insufficiency.The development of BT model comes from the expanding needs of building market. On one hand, the government is in lack of construction capital; on the other hand, the government cannot go against the laws and regulations to be in arrears, nor can the government require the construction enterprise to pay for the contract project in advance. The BT model has effectively solved this problem, not only helping the government to break away from the embarrassing situation that the infrastructure construction has to continue in despite of capital shortage, but also opening new investment channels for the construction enterprises who will benefit from the project, and thus initiate the sound development of the construction market.This paper introduces the development background, the basic concept, characteristics, application scope and significance of the BT model. This paper also analyzes the difference between the BT mode and other financing model, summarizes the combination of the BT model operation with the construction contract management model, as well as clarifies the difference between the funded contract. Thus, the paper puts forward the risk prevention and management control under BT model. Finally, this paper verifies and summarizes the research findings of BT model by analyzing and studying the Chengxinpu Freeway (Pujiang Section) Project. Through empirical study, this paper finds out deficiencies in the Project and puts forward some suggestions.This paper aims to summarize the theoretical basis and practical experience on the BT model through research on a large number of literature study home and abroad, as well as deeply study the BT model system.. Besides, the paper will provide a solid theoretical foundation and operational guidelines for the infrastructure construction in China on how to better apply the BT model. Also, this paper discusses project operation under BT model from a win-win perspective, hoping to provide theoretical references and practical guidelines for the government or enterprises to carry out projects under the BT model in the future.