The Prefecture-level City Government Investment And Financing Platform Development Mode Research

In the context of urbanization, infrastructure construction, especially municipalinfrastructure construction has the increasing need for funds. In this case, the localgovernment’s investment and financing platform comes into being, gradually developsto be stronger and becomes the most important force to meet requirement of projectfunds. For the majority of the prefecture-level cities, they have more urgent demand formunicipal infrastructure construction because they have relatively weaker developmentfoundation and more defaults in the past development. But because of the limitedfinancial resources of governments the pressures of protection project constructionfunding are greater. Therefore, as the effective means to attract market fundsgovernment investment and financing platform win governments’ high favor. Becauseof the development degree of the prefecture-level cities’ economy and the constraints oftotal resources, it is difficult to guarantee the developing quality of the platform. Sincethe second half of2009, the potential risks of the companies’ operation mode, which areestablished on the base of governments’ investment and financing platform have beenwidely concerned by the public and have aroused more and more controversy. On theone hand, governments’ investment and financing platform has played an important rolein the development of economy; on the other hand, it also has potential risks. Therefore,it is necessary to improve the developing mode of the investment and financingplatform and promote the sustained and healthy development of all levels of investmentand financing platforms in the way of reform and innovation.This paper analyzes the universal problems and the reasons they are caused in thedevelopment of the current local government investment and financing platform.Combining the development of investment and financing platform in Mianyang andintroducing the concept of project risk management, the paper conducts riskidentification and impact analysis for the problems of municipal government investmentand financing platform corporations and proposes four improving measures for theproblems by using risk management method so that the corporations can better adapt tothe demands of national policy and local development. The research of this paper can provide some useful reference for the development of municipal government investmentand financing platform corporations.