The Fundraising Problem Research Of Chinese Highway Projects

The highway construction in China requires huge amount of money. For years, the lack of financial support has been a major problem that threats the sustainable and healthy growth in transportation development of our country. Due to the underdevelopment in the early 20th century, the highway construction in China has suffered long from lack of steady and standard long-term funds. The project financing is often affected by inertial thinking, political dogma, and the idea of meeting the emergency, which caused the short-sighted, unsystematic, and unscientific development. Also, the lack of supervision creates the breeding ground for corruption. How to break through the current predicament? With reviewing the past and the successful experience of developed countries, a reasonable and legal procedure in project financing should be established so that the administration could deal with the defalcation and out-of-funds. The author focuses on the suggestions for Chinese highway projects fundraising. The method of qualitative analysis is used in analyzing the progress and experience in fundraising of highway projects of developed countries. The author analyzes the current condition and major problems in fundraising of highway projects of China, which lead to a discussion on long-term and realistic strategic choice. That is to establish the regulations of highway, to set up the special funds for highway construction, to rectify the proportion of financing' structure, to issue bond on highway construction, and to attract the private investment and so on. Those new financing patterns should be useful to the fundraising of highway construction in China.