Research On The Financing Of Non-operating Municipal Infrastructure Projects In Tianjin

With the recent rapid development of our economy and society, non-operating municipal infrastructure projects are playing a very important role in the development of society and economy and improvement of people's living standards. At present, Tianjin is in a period of rapid growth, with the need of sound non-operating municipal infrastructure. The investment scale of non-operating municipal infrastructure projects is large, requiring a large number of stable sources of funds for construction. The existing financing channels in Tianjin can not meet the funding requirements of non-operating municipal infrastructure projects. How to create new financing patterns to provide stable funding sources for the non-operating municipal infrastructure projects in Tianjin is an issue urgently needed to deal with.On the basis of in-depth analysis of existing financing channels, the paper builds two innovative financing patterns, self-balancing pattern and government procurement pattern to provide construction funds and solve the problem of shortage of funds for non-operating municipal infrastructure projects in Tianjin. The two patterns are organized by a project company.The self-balancing pattern is organized by the project company. The government gives the first level exploiting rights and the whole earnings of the operating land in the area of the project to the project company to raise construction funds for non-operating municipal infrastructure projects. This pattern converses the non-operating project to an operating and self-balanced entirety. The self-balancing pattern frees from the inherent problems of the traditional financing pattern and addresses the project company's initiative.Under the government procurement pattern, the project company signs a government procurement agreement about non-operating municipal infrastructure project with the government. The government puts the procurement funds into budget, providing predictable and stable source of funding for the project company. Then the project company raises funds for. non-operating municipal infrastructure project.The two innovative financing patterns break down the drawbacks of the current financing patterns and provide a stable source of funding for non-operating municipal infrastructure projects in Tianjin with strong practical significance.