Research On Solvency Of Toll Road Of Hubei Province

Constructing road using loan and charging to repay loan is a very importantpolicy to speed the development of road construction. In a way, it solved theproblem of road construction fund scarcity and promoted road construction of ournation. Toll road facilitated the progression of road industry of Hubei province. Itimproved the quality of traffic network. It played important role to dull trafficcongestion problem. It can improve investment environment and develop nationeconomy also.With the development of national economy and traffic network, our country's tollroad policy is changing and debt solvency problem of toll road is emerging. Wemust research and solve this problem, or it would affect the development of roadindustry of Hubei province. So we should make a systemic study of debt solvencyof toll road in Hubei province. The paper, including four parts, discusses thisquestion.Part I Analyzes the rationality of the existence of toll road. Introduces roadclassify and the emergence and development of toll road at home and abroad.Discusses the identities of benefit of difference and quasi-public goods of tollroad.Part II Analyzes the status quo and debt solvency of toll road in Hubei province.Then it comes to a conclusion that the load-repaid ability is poor.Part III Analyzes the reason why toll road's debt solvency is poor in Hubeiprovince. Explains how large-scale toll road is produced using game theory.Narrates the efficiency limitation of toll road with property right theory. Thereason for badly load-repaid ability includes illogical traffic design, lessgovernment investment, unapt classificatory proportion of toll road, highcharging cost, vehicle diffluence because of the completion of highwayconstruction, etc.Part IV Research on how to improve debt solvency. In order to enhance debtsolvency, we should adjust charge rate, the position of toll station and chargingways and means. The establishment of discharge fund and prompting and obligation mechanism, financial management and budget control is beneficial to the improvement of debt solvency too. About new project of toll road, we must plan in detail and strengthen construction cost control ensuring favorable debt solvency of toll road.