Case Study Of Financing Mode Selection Of Highway In China

In 2014, China's Ministry of transport Design and Research Institute released that, in 2030, China's highway mileage will reach 160,000 kilometers; according to traffic construction development goals, the average cost of the new reconstruction of highway will reach ?80 million/KM, and the total funding requirements of highway construction, in China, will reach ?6,000 billion, the annual demand for construction funds nearly reach ?800 billion. Capital shortage constrains the development of China highway construction. The characteristics of highway project are huge investment, long duration, great risk, long recovery period. At the same time, the short-term funding is difficult to obtain, project interruption occurred frequently in highway financing practices. Since the Twelfth Five-Year guideline had been published, the highway area marketization has become scholars' research emphasis, private capital enter the highway area is the master key of marketization, and it is also the key to solve the above-mentioned problems; in different financing mode, the private capital plays a different effect. How to choose financing mode according to the actual situation is a problem must be solved urgently. This paper aims to through the study on highway financing mode selection, from the view of the comparison of three kinds of financing models, BOT, PPP, ABS, to construction highway financing mode selection model, the APFC model. And apply the APFC model to the actual case of YW highway, to provide a scientific decision-making method of highway financing selection, so as to improve the efficiency of the private capital.At present, researches on infrastructure investment and financing, no matter in domestic or abroad, mainly focus on the investment subject, financing channels and financing models. And it is also a classic issue in economics and management area. With the characteristics of commercial and commonality, the argument of the investment and financing mode is always accompanied with the construction of infrastructure. The argument mainly around the following questions:whether the government should bear all the cost of infrastructure construction, how to coordinate the relationship between commercial and commonality, how to choose the mode of investment and financing. The research on these core issues is the support of this paper. This paper, innovatively, from the perspective of highway financing mode selection, analyses the influences of choosing financing model so as to construct the APFC model of highway financing mode choosing. The specific contents of this paper are as follows:this paper, based on the previous scholars in the research field of infrastructure financing, analysis and compare the BOT, PPP, ABS three kinds of financing mode which are commonly used in the highway project financing to get their applicability and differences;selects four factors influencing the choice of highway financing mode:capital ability of the investment subject, political factors, project financing factors and financing cost factors; then use AHP, nine points scale method combined with expert evaluation method to construct APFC mode; finally, this paper selects YW highway as a case study, then analysis YW highway with APFC mode, and ultimately get the optimal financing model of YW highway.