Research On The BT Mode Of Financing For Chinese City's Infrastructure

City's infrastructure plays an important role in national economy and social development. It is a basic factor to realize the modernization of cities. City's infrastructure, as basic material condition of economic increase, should be kept synchronously increasing with economy. At present, the problems which infrastructure of our country is underdeveloped and undercapitalized increasingly pop out. The causes are various. The writer of this paper thinks the uppermost problem is the single investing and financing channel. Plentiful studies have been done. Mostly fruits include that the theories of investing and financing are more mature and channel of investing and financing is wider.The modes of financing, such as BOT, TOT, ABS, PFI, are used in our country atpresent. The writer has found that the BT (Build and Transfer) mode is a new way of financing and drew a conclusion that BT is an effective financing mode of infrastructure by studying those fruits and Combining an example of Cai Yuan-Ba Yangtse new bridge in Chongqing.Firstly, infrastructure of our country is comparatively underdeveloped. The primary cause is that our country is undercapitalized and channel of financing is limited, which can't keep up with the development of infrastructure. So, the research on financing mode is very necessary. And the aim of the paper is to introduce the BT mode, a new way of financing.Secondly, the writer explains the meanings of infrastructure and city's infrastructure, and introduces the history of development and management system of city's infrastructure. And then project finance theory is been emphasized to expound. It includes concept, frame and cost analysis of project financing, and capital market and seedtime and feature of financing system's reformation, and historical evolution of financing mode, and the development of financing management system of our country. Lastly, risks and measures to elude risks in course of project financing are analyzed in detail. This part is the academic foundation of the BT mode.Thirdly, the writer introduces several mature modes of financing for infrastructure in our country, such as BOT, TOT, ABS, PFI. The conclusions and methods of theresearch on these modes and the result of their application can been all used for reference for the BT mode.Fourthly, through studying former parts, the writer brings forward the BT mode as emphases of this paper. The mode will be benefit in attracting foreign capital and private capital for infrastructure belonged to government. After completing the project, all rights related to the project are been redeemed by government according to the agreement. That is, the mode means that project is invested by enterprises, redeemed and installed by government. There are six operational stages of the BT mode, determining a project, inviting public bidding, selecting contractor, developing, constructing and transferring. Meanwhile, the supervising role of government in BT project is discussed. Then, the writer analyses the risks of the BT mode and measures to elude these risks when it is implemented in infrastructure project.Fifthly, the BT mode is used by the constructive of the Cai Yuan -Ba Yangtse new bridge in Chongqing. The feasibility of using the BT mode is proved from several aspects such as brief introduction, cost analysis, economic and social benefits of the project. In this part, the case shows the value of the BT mode.In a word, the writer has demonstrated the feasibility and value to use the BT mode in city's infrastructure. The problems of the BT mode are analyzed and current measures to develop this mode are brought forward. Moreover, governmental function in the BT mode is consolidated. The theory and prospect of the BT mode are further discussed.