Study On Financing Model Of Infrastructure Of Linyi City

The level of infrastructure is the driving force for development and thecornerstone of a city. It is related to all aspects of the living and economicdevelopment. It mainly includes the operational infrastructure, such as profitablebridges, highways and telephone. Quasi-operational infrastructure, such as subways,waste treatment plant and so on. Non-operating infrastructure, such as the urban openroads, green and so on. The perfection and direction of development of theinfrastructure, is closely related to the level of economic and industrial institutions ofthe city. On one hand, economic development and industrial restructuring can increaseregional economic and local government tax revenue, provide funding forinfrastructure. On the other hand, the improvement of infrastructure can provide goodenvironment for economic development. However, relying solely on governmentfinancial investment, has been unable to meet the demand of the residents, there is anurgent need to find new way of financing. How to introduce the private capital andforeign capital in an efficient and legitimate way to infrastructure projects, is the newproblem of small and medium-sized cities’ governments.Linyi is located in southeastern Shandong, it is the largest and most populousprefecture-level city of Shandong Province. Geography, location, environment,historical reasons formed well-developed agriculture, logistics and tourism, and thetraffic and trade center city at southeastern Shandong, in additional, there have beenmany famous story in the history, it is called “Mall, Watertown, Famous city”. Inrecent years, Linyi focused on infrastructure construction, has a major breakthroughin road construction, sewage treatment and urban greening, but there is a big gapbetween Linyi and the domestic first-tier cities, the reason is due to the lack ofinfrastructure funding. In order to speed up economic development and urbanization,it is necessary to enhance the city’s infrastructure financing capacity, the diversity of the financing model, timely solute the problem of infrastructure financing.In order to solve these problems, this paper is divided into the following sections:Firstly, summarizes the research status, determines the basic idea of this paper.Secondly, introduces five new infrastructure financing models and there advantages,disadvantages, and the match with infrastructures. Thirdly, makes longitudinalcontrast and horizontal contrast of Linyi infrastructure data, finds out its infrastructuredevelopment trends and existing defects, the direction of development of the next step,and describes the present situation of financing. In order to solve these problems,Linyi should improve the financing environment and optimize financing model. Andthen analyzes the existing problems of the city infrastructure financing, case analysis.At last, summaries the paper and concludes.