Research On Highway Construction Financing In China Western Region

The highway is important infrastructure of modern economic and social, linking nationaldefense, economic and political development. Accelerating highway construction has becomean important guarantee for steady and rapid development of China’s economy. Within theconstant improvement of China’s highway network, unequal development in eastern, middleand western is growing prominent. The western of China covers a vast geographic area,contains a large range of transportation construction. In "Twelve Five" period or even longer,highway construction in western region will be the focus of development. Building requireslots of funds, however, due to complexity of the natural environment, hysteretic economy,weak local finance, lack of attraction for financing, limited source of fund, coming repaymentpeak and other factors. Relying solely on traditional financing model has been unable to meetthe requirements of sustainable development of highway construction. Innovating financingmechanisms for long-term and opening new financing channels has been urgent problem forwestern highway construction.This paper is based on the theory of highway construction financing and financingcharacteristics, author provides examples to analyze the current situation and future plans ofwestern provinces highway construction. From the perspective of regional characteristics,author proposes measures to solve the financing problem and provides reference for westernhighway construction financing direction.Firstly, from the economic characteristics of the highway and the existing financingenvironment, this paper introduces the characteristics of China’s highway financing. Secondly,combined with the special geographical environment in the western region, regional economicconditions and the level of highway development, the paper defines the huge demand and thecurrent problems of western highway construction financing, thus proposes the long-termfinancing mode combining financial allocations with bank credit. Paper makes the best ofstrategies and suggestions which combining capital market direct financing with projectfinancing and other multi-channels for raising funds of highway construction. Finally,combined the analysis of actual case, author highlights the important significance howdiversified financing influencing on western highways future development.