The Model Study Of Project Finance On Construction Of Rural Infrastructure

Rural infrastructure is the carrier of rural production, life and development, which is basis to improve the agricultural productivity, the construction of socialist new countryside. At the moment, due to defect in market system and the structure of town and country, the rural infrastructure confronts its bottleneck and the main problem is financial. Most of capital pursues profit and the cash flow generated by rural infrastructure is too small to attract the investment, so the most serious problem needed to be solved is to make the investor and channels of financial diversified and attract the money by all means, improving the efficiency of building rural infrastructure.The essay has researched the definition of rural infrastructure and expounded the theory of vendibility and financing in infrastructure. Base on these theories I have classified the rural infrastructure and combined the project financing model with rural infrastructure building in order to explore an appropriate style which suits the situation of China. Meanwhile the essay refers to the overseas experience and states the status quo of rural infrastructure financing, proposing several countermeasure and suggestion.According to the thinking, the essay is divided in six parts:The first chapter, introductory theory, introduces the background of choosing title and analyzes practical significance and theoretic importance, to make sure the purpose of research. Besides it put forward the frame of essay and proposes the ideas and the way of research.The second chapter, theoretical basis of rural infrastructure project financing, defines the concept of rural infrastructure and classification. It states the public products theory, infrastructure and infrastructure’s vendibility, discussing the public finance theory, rural finance and project finance theory.The third chapter, the application of project finance in construction of rural infrastructure, firstly introduces typical mode:BOT PPP PFI and the problems that may be faced and principle when applying the project finance. This chapter emphasizes on character, subject and model on each kind of rural infrastructure.The fourth chapter, the situation of rural country infrastructure finanacing, firstly, introduces the rural infrastructure status and analyzes the problems that may be existed in construction and financing. It points out the barrier confronted when project finance combine with construction of rural infrastructure.The fifth chapter, the reference of experience in rural construction financing oversea, by analysis of literature, financing policy, system, and banking system and model of financing in USA and Japan, summarizes the experiences that are applied for our country’s status.The sixth chapter, proposals of project finance on construction of rural infrastructure, put up some proposals from several aspects such as government role, channels of finance, rural banking system and project finance.The last, sums up the essay and outlooks the future study.