Small Towns Infrastructure Financing Model Research

According to "Twelfth five" long-term planning, China’s urbanization will shift the focus of small and medium cities and small towns. The urbanization requires a large number of infrastructures to satisfy the demands of growing urban population. The infrastructure of small towns is mainly non-profit or quasi-profit, and the injection of private capital is mainly into profit-oriented infrastructure. As a result, the capital for small towns construction is depend on government finance, but the limited government capital couldn’t solve the problems, therefore, the serious fund shortage of small town construction has already become the constraints of Urbanization and development of the economy and society. This thesis focus on the innovation of financing mode to find solutions for short of capital in the infrastructure construction of small town, thus to provide idea and program for the financing.By studying the financing mode of the infrastructure construction of small town, the main progresses are listed below:First, based on the definition and nature of small town and its infrastructure, this thesis analyze the present situation of small town construction and its financing. In general, there are three kinds of phenomenon in the infrastructure construction of small town:a) function is deficient and weakened; b) development is unbalanced; c) construction plan is weak. The core of the problem is a lack of funding. Then, by analyzing the sources of funding, the mode of financing, the thesis concludes two problems in financing of the infrastructure construction of small town:a) the subject of investment is single, narrow channel to acquire capital; b) policies and regulations of township construction investment failed to create a good investment environment. The construction situation and financing status indicate that we should actively explore new ways of financing.Second, by applying and extending the concept of project portfolio, the financing model of the infrastructure construction of small town is improved and constructed. Starting with the introduction of the concept of project portfolio and its portfolio principle, the basic framework of financing model is constructed. Then, a systematic analysis is made about the main participants of financing mode and the contract relationship. Finally, the operation process of financing is explored and summarized.Third, based on the concept of project portfolio, basic principles, main participants and the contract relationship as well as operation process, the construction of xx small town by "Da Han mode" is chosen as case study to prove that the financing mode of project portfolio is feasible, and this case study could enrich the contents and progresses of the thesis.