Research On Pricing Of TOT's Utilization Rights

The infrastructure is a backbone of country and also the essential element for all social-economic activities. The construction and development of outstanding infrastructure is the foundation in terms of sustainable development of our country. Entering 21 centuries, in order to accelerate economic development, China has already entered the stage of increasing the investment for the infrastructure development to guide the economy up-gradation. During the planned-economic time, funding for infrastructure constructing is mainly from the national financing budget with highly centralized management method. After reforming, the provinces of our country proceed in large-scale infrastructure developments.How to attract and widely use the funds effectively? It becomes the most important issue, which provinces facing. TOT, as a new approach and methodology of project financing with characteristics in terms of funds lobby, renewed state-owned property, promotion of infrastructure privatization etc, must play an important role of infrastructure acceleration.The transferring of infrastructure's utilization rights is not only special feature of TOT, but also the key point of TOT. Moreover, studying on pricing of the utilization rights is so important to understand the feasibility and rationality of TOT. However, it is just implement TOT in china, which absolutely has many problems. This is why we should urgently study the TOT theory such as the pricing of the utilization rights. In this orientation, it can summarize experience and lessons in order to guide the TOT's practice.This thesis presents the theory system on pricing of theutilization rights by analyzing the pricing approach, meanings, measures and methodologies based on its value producing process, features and contents in order to calculate the price of utilization rights.This paper states two directions of assets evaluation to wit: income approach and cost approach distinctly based on the characteristics of utilization rights. To think about more risk factors, the approaches, namely Balate model and cash flow analysis is cited to make the evaluation result more rational and more available.To strengthen the pricing models of the utilization rights, the case so called Gao-Hai highway in Kunming is carried outs to in-depth study this topic.