A Brief Analysis Of BT Mode Applied In Infrastructure Construction

With the development of urban infrastructure construction and the increase in the demand of thefinancing of urban transportation construction, BT mode is becoming more and more widely applied.Especially when the central plains economic zone has entered a unprecedented rapid developing period,Zhengzhou as the provincial capital of Henan province, is exposed to the problem of massive infrastructureconstruction investment for the reason that the financial resources of the local government is limited, whichcan never afford such large-scale investment of infrastructure construction. In this case, how to realize thesharing of profit and risk among government, enterprises and individuals has become a prominent tasknowadays. Since BT mode has contributed to realize the diversification of investment, it will play a crucialrole among various financing mode to solve the problem between investment and infrastructureconstruction, though it doesn’t have quite a long history in China.This paper gives us a systemic description and analysis of BT mode’s concept and features in the firstplace, and analyzes the mode through risk identification in terms of commercial banks, projectconfirmation phase, construction phase, and buy-back phase.Then the author thoroughly analyzes twoexamples of Chongqing Caiyuan Embankment Yangtze River Bridge and Shenzhen metro line5, and thensuggests some solutions to the existing problems and hidden troubles. Meanwhile, the author particularlyillustrates the modified BT mode that is BT financing agent construction system. Finally some effectivepreventive measures towards the risk prevention and control problems of investment and financing modeare proposed. For example, a perfect risk database should be established on the risk of BT projectinvestment, as well as appropriate and effective guarantee system and reasonable financing mode on therisk prevention and control of commercial bank loan, etc.This article makes a thorough study of BT mode’s meaning in infrastructure construction through casestudy combined with theoretical research, and summed up a series of effective strategies and measures inthe usage of BT model, which provides the local governments with some theoretical basis and methods forreference in the aspect of diversification and standardization of investment and financing. In this way, the paper further validates that BT mode is entirely applicable to our country’s public infrastructureconstruction, on condition that actual situation can be combined with. BT financing mode is bound tobecome the strong power to speed up the construction of public infrastructure with its advantages displayedto its greatest extent.