Costs And Benefits Analysis For Financing Of Highway Projects

Currently, the financing pattern of highway projects has entered into the period of "national investment, local funding, community funds, use of foreign capital" in China. The domestic commercial bank loans accounts for a high proportion of a variety of financing Highway Projects used in China. Whether the domestic loan financing costs are the lowest in all the financing? Whether Other financing arrangements can reduce the cost of financing Highway Projects? These problems are needed to study. The thesis is on the basis of such a background, standing in the government, transportation authorities and the authorized position of the operating companies to consider how to improve efficiency of its micro-financing and make sure the cost of financing playing the largest financial benefits. In the article, the Author considers finance benefits as the secondary indicators of Highway Economic Evaluation, comes to scientific decision-making of financing packages, so as to improve its micro-financing efficiency. At the same time, the thesis provides a scientific basis for the promotion of road project financing structure toward more healthy direction.First, the paper elaborated the formation process of road project financing in China. Investment and financing projects on the existing highway system in the specific financing were introduced. Simultaneously the author collects and analysises the data of the constitution of highway project financing from "seven-five period" to 2008, analyzed its trends, obtained the result:In the current financing structure, the domestic commercial bank loans accounts for a high proportion while other financing is not fully used. Secondly, this formula leads the cost of financing into specific financing methods, on the basis of the content of the main cost of finacing, quantified the financing costs of TOT and BOT, preliminary discussed the impact of economic development capital market enviroment and macro-policy's of financing costs; Once more, the thesis lead the cost of financing into the benefit of financing through the definition of the benefit of financing, quantificated the financial benefits, established good foundation for applying the financial benefits into Highway Economic Evaluation; Finally, financial benefits will be used as a indicator into the highway project economic evaluation to determine the feasibility of financing options and pros and cons of various financing programs.