Study On The Multiple Mode Selection Of Infrastructure Project Investment And Financing

The rapid growth of the economy and the high speed of urbanization in China make the demand of municipal infrastructure construction increasing fast. But the traditional way that takes the government funds as the main source of infrastructure construction can't satisfy the demand today. To deal with the conflict between lack of money and great demand, the infrastructure project financing mode with the aim of attracting non-governmental funds becomes more and more popular. As China is still in the economic transformation period, the law system and other politics can't regulate and guide fully the way of project financing, and in this situation, many projects built by new financing way meet with lots of problems just like the conflict between public demands and profits making. In the meantime, the local authorities usually enter the dilemma that whether they directly invest or not, and which financing ways they should take. So the research about the infrastructure financing is getting a hot problem attracting much attention from the academic circles today and in the near future.Domestic and overseas scholars have lots of researches about infrastructure financing that focus on the investors, the channel of financing and the mode of financing. These above are also the typical problems of economics and management fields. As the infrastructure projects have both business and public characteristics, we are wondering whether the government should undertake all the expenditure or not, and how the government deals with the contradiction between the public demands and money making. The paper sets out the concept of the infrastructure, analyzes the general characteristic of the infrastructure, introduces comprehensive evaluation methods of the infrastructure projects and explores new method of projects evaluation. It tries to set up the whole systems of the infrastructure financing mode selection. The article makes a research from the following aspects: The paper summarizes all researches on the infrastructure financing theories from domestic and abroad. These researches cover many important spheres such as infrastructure financing theory, infrastructure definition theory, projects financing related concepts, projects features, factors influencing financing ways, etc. These subjects are getting more and more significant and they are attracting more and more attention. But up to now, they have not formed systematical studies yet. The thesis presents the research methods and technology approach.The dissertation tries to demonstrate the natures of infrastructure systematically, to assess the infrastructure functions in detail, to probe into infrastructure theory foundation, to find out the investment characteristics, to inquire into the government role in the infrastructure construction. It points out that the infrastructure has the characteristic of the mixed economy, so the government should make efforts to build manifold competition mechanism in the infrastructure field. The supply and production of infrastructure products can't be controlled completely by privatization market. But we can set up this kind of financing mechanism under the supervision of the rules and regulations and the government's policies.The dissertation synthesizes many infrastructure project appraisal items by combining the national economy evaluation, the environment influence evaluation, the finance evaluation, etc. Thus it forms comprehensive estimation system of the infrastructure project according to its nature analysis. By using the comprehensive estimation system, Public and business property degree can be analyzed, and the government can select the suitable kinds of investors involved in the project, and determine whether it undertakes all the expenses or not .The dissertation states the traditional value estimation methods, and then expresses the viewpoints that it is very difficult to estimate accurately the infrastructure project value. It introduces the real object option concept into value estimation, holds the views that the method of the real object option is suitable in dynamic state but not in static state. It attempts to find general method of value estimation through real object option way, to discuss different and similar points between the value estimation methods through the real object option concept and traditional pattern of cash flow. It points out that introducing the real object option concept into the infrastructure project value estimation can improve project value analysis systems for various purposes.The dissertation discusses completely infrastructure financing characteristics in current China, project financing mode spreading in recent years, and strong points and shortcomings of each kind of financing mode in particularly conditions. It also provides guideline for the feasibility and the correspondent problems analysis when adopting each kind of financing mode in our country.The dissertation expounds the process of the infrastructure financing mode selection, explains the impact factors of the infrastructure financing mode choices and analyzes the connection of the impact factors , then uses BPNN as the evaluation way to confirm the infrastructure financing mode choices.Making use of the theories framework this time, The dissertation makes a complete study of the subway No.4 extension line in Shenzhen. Starting from the public and business features of the subway project, then proceeding with the national economy evaluation, finance evaluation, social influences evaluation, and calculating the value of the subway project by the real object option evaluation, the paper draws a conclusion that this project's public feature matches it's business feature, and it adopted the most suitable financing way-the BDOT mode. Therefore the study case confirms the theory framework of infrastructure financing mode choosing correspondently.The dissertation has delivered its opinions from three creative aspects as following:(1)The dissertation sets up the comprehensive appraisement system about the infrastructure financing by Combining national economy evaluation, finance evaluation, society assessment and environment influence evaluation, and by assessing project value through the real object option method in detail for accuracy, the research carries on comprehensive analysis with qualitative and quantitative methods to determine the degree of the infrastructure business property and public property, and offers an obvious reference for the government related decision making.(2) It introduces the real object option concept into value estimation, holds the views that the method of the real object option is suitable in dynamic state but not in static state. It attempts to find general method of value estimation through real object option way, to discuss different and similar points between the value estimation methods through the real object option concept and traditional pattern of cash flow.(3)The research reveals the process of the infrastructure financing mode selection, gives an exposition of the impact factors of the infrastructure financing mode choices and analyzes the relations of the impact factors, then uses BPNN as the evaluation way to confirm the infrastructure financing mode selection.