Wx Metro Line X Project Financing

Along with the national economic development and the improvement of people’s livelihood, the metro has nowadays become the pivotal solution to the traffic jams in major cities. But currently the investment and financing have become the stumbling blocks amid the metro project construction and development in China.This article starts with the investment and financing of the metro project, introducing the important view and the development history of the capital structure theory and the new capital structure theory, analyzing both domestic and foreign project financing modes, and summarizing the project financing risks. Then the author studies the operating conditions of the metro projects nationwide, analyzes the domestic and foreign metro project financing situations, and divides the investment and financing mode of metro projects into4aspects: investment fully assumed by the government, investment led by the government+borrowings, government investment+franchise operation and the fully diversified financing. Furthermore, this article analyzes the financing demand of WX metro X line, evaluates the financing cost as per different types of financing modes, and summarizes risks of this project. Finally, combined with the actual situation of the project, the article forwards the advice of using the mode of investment led by the government+syndicated loan in WX metro X line project with the financing mode well demonstrated and feasible conclusion generated.And this article also provides instructive reference to the investment and financing of metro projects in China.