Study On The Utilization Of BOT Financing To Facilitate The Infrastructure Construction Of West China

Since the execution of the Strategy of West China Development from year 2000, the economic growth rate of west China witnesses a very fast increase, and the regional economy gradually develops harmoniously. Due to the fact that the lagging behind of infrastructure is the bottleneck for economic development, infrastructure development must be put in the first place in the West China Development. The economic development of one region is closely connected with its infrastructure status, and traditionally, infrastructure projects are invested and constructed by governments. However, the pure investment by the government cannot satisfy the urgent need of the economic development of the west. In order to adapt to the economic globalization and the opening and reform policy of China, the government must be liberated from the previous infrastructure investment model, and a diversified investment mechanism must be formed. Before, foreign direct investment, loans from foreign financial institutions and bonds issuing have played a very important role in the economic growth of China, but at the same time, this has caused an increase of national debt, interest rate and foreign exchange risks. Base on the above, people are trying to find new financial methods which can reduce financial and debt burdens, BOT gradually becomes one of the most important financial methods for attracting private funds for the development of infrastructure worldwide owing to its specific characteristics and advantages.This thesis consists of four chapters: Chapter one firstly outlines BOT's origin, basic structure and operation procedure, then elaborates the theoretical basis, characteristics, effects and several key issues of BOT financing method.Chapter two introduces the utilization of BOT financing in developing and developed countries around the world, and then makes comparative analysis of the utilization of BOT financing in developing and developed countries, finally introduces the status of foreign and domestic BOT practices in China.Chapter three points out that BOT is an important financing method to facilitate the infrastructure construction of West China, this chapter firstly analyses the development status of infrastructure in West China, discusses the strategic position of infrastructure construction in West China Development, then expounds the financing status of infrastructure in the west and the reasons, finally this chapter summarizes the importance and advantages of BOT financing to the development of infrastructure construction in West China. At the same time, Chengdu No.6 Water Plant B BOT Project - the first foreign infrastructure BOT project in West China is introduced for case study, the operation process of Chengdu BOT Project is analyzed in detail, and summary is made on the experiences and lessons of Chengdu BOT Project.Chapter four raises several policy suggestions for utilization of BOT financing to facilitate the infrastructure in West China Development, and points out that in order to ensure the success of BOT projects, China shall further perfect relevant laws and regulations, improve investment environment, intensify government support to BOT projects, and standardize BOT financing, finally China shall attach the same importance to domestic and foreign BOT financing.In a word, in order to solve the problem of capital shortage in the infrastructure construction of West China, BOT financing is a very effective way. BOT financing will have wide developing prospective in the infrastructure construction in West China, and will make tremendous contribution to the execution of the Strategy of West China Development.