Urban Rail Transit Project Financing Lease Research

After decades of socio-economic development of reform and openingup,China has entered a period of accelerated urbanization development. Urbanization is an important engine, inpromoting China’s economic development.Gathering population and resources so that production and consumption more focused, we have created more jobs, improve production efficiency. But also itadress great pressure on urban traffic environment.Current traffic congestion of cities even more severe, greatly increasing the cost of living and work. Learn the advanced experience of the construction of the world’s other major cities, and vigorously promote urban rail transit construction, to create three-dimensional convenient and efficient urban transport system, it is an inevitable trend in the development of urban infrastructure. Modernization of rail transit construction is an important symbol of the city, China’s Beijing, Shanghai, Guangzhou, Chengdu and other cities have built a number of urban rail transit route, some other cities now have under construction or to build urban rail transport. But rail transit project construction and operation of high costs to all levels of government a great deal of financial pressure, the construction of rail transit projects local governments to take a variety of financing options but is still facing difficulties. How to develop alternative sources of finance and innovative financing methods, address the financing needs of rail transportation and other urban construction, to become builders of research. Financing lease fifties originated in the United States, economic development in the western developed markets has been more mature. Introduced into China since the 1980s, with the improvement of China’s market economy development and related financial legal system be a great development in the country. Compared to traditional financing, lease financing this approach has irreplaceable advantages. Cited financial leasing in urban infrastructure construction, and gradually become an important financing. Project financing is an innovative form of lease financing lease, which is based on the entire project-oriented, asset and project to project future earnings expectations are formed as a source of rent.This paper introduces the concept of financial leasing and project financing, characteristics and advantages of the concept of project finance leases, and the difference between financial leasing and project financing, and its scope of application. Second, analysis of China’s urban rail transit project investment and financing major mode and shortcomings, analyzed several typical project financing model. The paper then this new project financing lease financing models introduced to the rail transit project construction, by analysis of the respective applicable laws, regulations and practical applications of finance leases, from the law demonstrates the feasibility of the future was a finance lease, track transportation project finance leases potential lessees and lessors. The fifth chapter to the future size of the working capital gains made specific model uses project finance leases in urban rail transit project finance leases specific operational procedures. Paper Shenzhen Metro Line 4 2 project as an example, analyzes the financing structure of rail transit project finance leasing, financing risk analysis, project financing advantage over other modes of analysis.The main results of that paper, through analyzing disadvantages of urban rail transit project financing model presented advantages of both project financing lease financing, analyzes the feasibility of urban rail transit project financing lease model, project financing lease mode when the practical application of urban rail transit mode of operation, operating procedures, the actual use should be noted that risk control and other issues. Thesis by introducing project financing lease mode, a useful exploration of China’s current urban rail transit diversified financing mode.