Comparative Analysis Of BOT And PPP Financing Mode For Qingdao New Airport Highway Construction

With the developing of urbanization,we should give priority to the traffic construction.Transportation is the forerunner of urban and social economic development.It plays an irreplaceable role in foundation,leading and service function.With the promotion of urbanization strategy,the demand of infrastructure is increasing in China,especially for transportation infrastructure.Highway is the main force of transportation,and the construction of highway is particularly important for the construction of transportation infrastructure in China.With the rapid development of China’s economy,the government has strengthened the construction of highway projects.In order to complete the infrastructure construction,the government is facing enormous financial pressure.At present,the main problem of the infrastructure construction projects in China is that the project operation has not changed the mode of government predominance,which is the key problem in the developing of infrastructure.In addition,the debt crisis of local governments is becoming more and more serious.The governments have serious debt crisis in different provinces,cities and counties.With the developing of urbanization,the traditional economy cannot adopt to the new economic system.The developing of urbanization requires us to establish a management system of transportation infrastructure that is suitable for the market economic system.To solve the problems of people’s livelihood and the difficulty of investment and financing in infrastructure,it is a trend to use BOT and PPP models in the future.This paper has referred to lots of literature and information related to BOT and PPP and defined the concepts and background in this field.First of all,this paper introduces the related concepts,financing characteristics and operation procedures of BOT and PPP models,and compares the similarities and differences between the two financing models.Then,the successful and unsuccessful cases in using BOT and PPP models for the infrastructure construction are listed.In the case of Qingdao New Airport Highway Project,this paper introduces its background,necessity,basic data and related technical indicator.After that,it works out that it is not feasible to apply the government-financed mode to the new airport expressway,so it is particularly important to find a reasonable and feasible financing operation mode for this project.The application framework,financing operation mode and financial situation of BOT and PPP models are quantitatively calculated and qualitatively analyzed.Finally the existing problems of the two financing models for the new airport highway in Qingdao are putted forward,and the existing problems of some financing models for the transportation infrastructure in Qingdao are extended,and corresponding countermeasures and suggestions are putted forward.This paper studies the cost and benefit of Qingdao new airport highway project.BOT and PPP financing models are compared through cost-benefit calculation.Combining with theory and practice,using qualitative analysis and quantitative analysis to seek for a financing system which suits China’s traffic development and promotes innovative financing system better.At the same time,the advantages and disadvantages of the two models and the main problems of it under the current conditions are analyzed.And the innovative methods which benefit the rapid development of China’s transport infrastructure are studied.The purpose of this study is to provide some theoretical guidance and practical reference for the current highway financing operation in China.So that users can accept,investors get reasonable profits and social benefits can be massive improved.