Highway Construction Project Financing Issues

The expressway is the basis of national economic development, which is the symbol ofmodernization of the society. In recent years, expressway construction of China has madegreat achievements, but the problem of funds is very serious. As the way of financing issolitary, and the channel of capital source is narrow, the expressway is faced with soaring debtpressure. Therefore, in the process of expressway construction and development, opening upnew financing channels has become an urgent issue.By means of documents analysis and case analysis, based on the project financing theory,according to the characteristics and financing capability of the highway, and on the basis offully using relevant theoretic achievements, this thesis conducts a study on the financing ofhighway construction project, so that alleviate the fund pressure of expressway, and providereference for project financing activities of highway construction in Hebei province.Firstly, this thesis introduces the current situation and financing condition of expresswayin China, and expounds the basic concepts and theory of highway project financing. Secondly,on the basis of analyzing foreign highway project financing, points out the problems ofexpressway project financing in China. Thirdly, analyses the traditional expressway financingchannels, introduces the meaning, advantages and feasibility of each project financing modeincluding PPP mode, BOT mode, TOT mode, ABS mode and PFI mode, and points out theprospect of each project financing mode. Then, according to the actual situation ofexpressway in Hebei province, analyses the related issues of expressway project financing，such as the general situation of highway project financing in Hebei province, difficulties,concrete solution measures and so on. Furthermore, elaborates on the highway trust financingpractice of Hebei province. Last, in the reference of successful project financing experience,this thesis puts forward proposals for highway construction project financing of Hebeiprovince.