Research On Financing Mode Of Railway Construction Project In China

Railway is very important to China who is in the course of deepeningreform. Railway affects the industrial structure and industrial layout of theeconomic in our country directly, and it is beneficial to change the way ofeconomic growth, deepening the implementation of the transformation ofeconomic structure. Behind the rapid development of high speed railway, thegovernment is not able to afford the new railway construction gradually. Inorder to realize the proposed the railway construction target in the medium tolong-term railway network planning, the railway corporation of China，whoexperienced the super-ministires reform in2013，encounters the problems of thehuge debt and funding gap in new projects. To solve the current problems, thecorporation must come up with the solutions of how to develop diversifiedifnancing，reduce the cost of financing, and increase the railway financing way.After consulting a large number of previous literatures, this paper studied howto apply project ifnancing for the construction of railway. The main work andinnovations are as follows:The paper starts from the background of this article. The second chapterdeparture from the concept of ifnancing and project financing, then combiningwith the results of a large number of scholars，and descirbing the currentproblems of the research.The paper introduced the development of railway financing in our countrystarting rfom the traditional ifnancing model in our country. After this，Iillustrated the necessity of China’s railway construction financing modeinnovation from the financing scale, the sources of funds for the railwayconstruction in our country and the existing main problems.On the other hand, combining with the development of China’s railway financing condition，I discussed the feasibility of the four kinds of projectfinancing mode (BOT，TOT, PPP, ABS) in China. Then I made qualitativecompairson from the advantages to disadvantages of the specific application inthe railway construction project and introduced some successful cases of projectfinancing, summairzing the successful expeirence of them.In view of the BOT, TOT, PPP, ABS four kinds of financing mode, The fifthchapter discussed the influence factors which affected the ifnancing modeselection. Combined with the related theory of entropy, this paper designed theapplication of the theory into financing mode selection model The assumptionsof the model based on a particular project, and the model quantitative the factorsand index which would affect the project ifnancing，scoirng the four projectfinancing mode through the calculation. Then we can know which mode is themost suitable, I expect that the paper can provide a qualitative comparison toolfor the govenrment.In the end of the article, aiming at the problem of lack of ifnancingchannels in China’s railway development, I analysis the reason why the projectfinancing has not been used in the construction of China’s railway, and putforward some policy Suggestions suitable for the situation of our country.This paper has certain theoretical and practical significance about makingfurther development of railway and broadening the ifnancing channels. Theifnance evaluation model put forward by the thesis also has the strongmaneuverability and practicability. The contribution of the paper lies in thepromotion of project ifnance as well as the selection of the four kinds offinancing mode in practice.