Study On Financing Mode Of N-City Subway Construction

To overcome the impact of the year 2008 global financial crisis, China government worked out a plan of domestic demand stimulus about 4000 billion yuan. With the quick pace of urbanization, some areas where conditions permitting have put forward the strategic plan which focuses on the development of urban railways. Under the Party Central Committee's instructions, fastening the pace of underway construction can not only expanding domestic demand which stimulates the local economic development but also can provide better traffic environment for the city residents, which accordingly can improve people's livelihood. The past years, as the economic development of N-city, the urban area and its population have increasingly enlarged, in addition to center-oriented and center-radiated traffic flow resulted from the "one city, one core" development mode, which have brought terrible traffic jams that make it difficult to communicate easy and smooth between the east and the west, the north and the south and the cross-river sides. This kind of traffic directly effects a new round development of N-City.After N-City successfully passing the report and verification to get the authority of holding the 7th nationwide city sports meeting in 2011, National Development and Reform Committee determined to support the underway construction of N-City. It became one of the second cities who have carried out to develop underway construction. The former investment of subway development is huge. Though recent years, N-City, as a nuclear city of interior part, has quickly developed and made a new record in its aspect of whole economic level, N-City government cannot greatly constructs it single-handed by means of its present economic strength.Firstly, this paper makes a brief introduction of the background of subway construction of N-City, the train of thought, methods, and main contents of the paper. Secondly, it analyzes the financing surroundings of the construction and points out the main difficulties it faces by analyzing its present situation. Then, it comprehensively researches the development history of subway around the world, and lists some comparatively successful development mode in some countries and areas and made an elaboration of them. Apart from these, by studying the changing disciplines of the financing mode, it puts forward three elements that subjects, channels and methods which make up of the financing mode in the construction of N-City subway. Based on the above three elements, it maps out an analyzing frame to effectively solve realistic problems such as the deficient capital and low efficiency. Lastly, by comparative analysis between modes of monopoly financial subjects and multi-lateral subjects, it gets a conclusion:To get rid of the financial situation of unitary subject, introducing competitive market mechanisms is beneficial to solve the difficulty of financial gap in subway construction, which will promote the harmonious development of economic benefits and social returns.