Research On BOT Financing Mode Of Students' Apartment Construction In Yunnan Colleges And Universities

Since the reform and opening up, fundamental changes occurred in the higher education of Yunnan. operating scale continuously expanding, the benefit of the school improving and scientific research strength enhanced. With the rapid development of higher education in Yunnan, university infrastructure continues to be expanded in scale, effectively solving the problem of inadequate basic running competence, providing conditions for the great development of higher education. The problem of construction funds supply falling behind the massive demand for infrastructure construction has become increasingly acute. With many colleges and universities actively exploring new modes of financing and seeking channels of gathering and using social capital, BOT project financing model began to appear in the items of basic construction, especially the logistics service sector and foreign exchange function of the project. Due to many reasons, applying BOT financing mode in university basic construction was not successful, as the contract cannot be the fulfilled after the completion of the project. At the beginning of concession period all kinds of problems were the focus; at last, the University raised funds from other channels to redeem the project, transforming BOT project to BT project, failing to to reduce the debt burden by using social capital.But BOT financing mode is still an effective way of fund-raising for university logistics service facilities construction projects. It is necessary to analyze how to guarantee the BOT financing mode’s successful application in the student apartment construction projects in colleges and universities. This paper is intended to analyze the reasons for the failure of the BOT project financing in the past and innovating university student apartments BOT project operation and management mode according to the characteristics of college students’ apartment construction project. It is also aimed to conduct the risk analysis of student apartments operation and offer methods and procedures to avoid stakeholders’ risks. Overall, a BOT financing mode of strong feasibility, of strong attraction to social capital and in line with the university management system of student apartment construction project will be formed to ensure the sustainable development of the basic construction of colleges and universities.This paper demonstrates the following several points: Firstly, the selection of BOT project financing mode to raise funds for the student apartment construction of colleges and universities is feasible and the optimal scheme. Secondly, adopting the BOT financing model in student apartment projects should take project stakeholders’ interests balance into consideration in the decision-making phase of the project, innovate investor revenue model and attract more social capital to ensure the successful BOT project bid invitation. Thirdly, because of the characteristics of higher education, the university student apartment of BOT project financing needs some improvement in the "O" stage, such as using means of anti-commission to conduct the student’s dormitory management. Fourthly, there are certain risks for stakeholders in BOT financing project of university student apartments, including risks in enrollment, rate of occupancy, operation and management, the fluctuation of accommodation price. These should be prevented through corresponding measures and be made clear in the concession agreement. Fifthly, according to the case analysis, it is feasible to use the BOT financing method to solve the problem of the shortage of funds in the construction of college student apartments, and promote the rapid and healthy development of Higher Education.