The Legal Thinking Of BOT Financing In Shanxi

Infrastructure construction plays a fundamental,overall and guiding role in the development of national economy. And it is also the essential condition of social development and raising the people's living standard. BOT,which sprang up in the 1980s,is a way of international financing and it specifically refers to Build—Operate—Transfer. It can solve the fund gap problem of the infrastructure projects that are planned to be constructed or being constructed in poverty—stricken countries or areas. There have been some successful examples of this way abroad. There have also been successful practice in the southeastern coastal areas since China's reform and opening up.Shanxi Province, located inland, has many problems although its development of infrastructure construction has made giant strides since the reform and opening up. Shanxi Province falls behind the more developed provinces in infrastructure construction and lacks the capital construction funds. The former condition constrains the economic development in Shanxi Province. Therefore, introducing the funds abroad or in other province by adopting BOT is an effective way of solving the problem of the infrastructure construction. Nevertheless, Shanxi Province lacks preliminary practice and has no standard rules and regulations and management mechanism.From this angle,this article analyzes the present condition of Shanxi infrastructure constructure and problems in it. And discusses that traditional financing way of infrastructure construction in Shanxi fail to meet the demands of the rapid development of economy on the basis of the introduction to the general principles of BOT. Next, this article points out the necessity of making full use of BOT to attract external funds and carry out infrastructure construction. Moreover, This article proves the main problems against the actural situation of Shanxi Province in BOT'operating process, especially the related legal problems. Finally, some specific suggestions in view of solving these problems are offered.