Investment And Loan Proportion Research Of BOO Project Based On The Maximum Profit

At present, with the continuous development of China’s economy, the deepening of reform and opening up, the old concept of infrastructure has been unable to meet the needs of the masses. Thus, to develop a way to promote rapid economic development, efficient infrastructure path is imminent. In this case, BOO, BOT and BT-based, the new construction financing models emerged. The introduction of private capital to BOO and similar models represented effectively solve the contradiction shortage and urgent need to invest in infrastructure between China’s financial capital. BOO model is a derivative of the BOT model, which is typical of developed on BOT basis of the highest level of public infrastructure privatization.BOO projects are mostly large infrastructure projects, the construction of a long period of time, capital investment and more investors invest their own funds alone difficult to complete, require banks and other financial institutions to loan financing, so the proportion of capital investment and financing decision-making is a project important research questions. However, existing research BOO project, most of the objective of maximizing investor returns, consider using bank loans generate interest expenses, or consider the construction cost of the construction period the proportion of investment and financing decisions. The lack of BOO projects during operations, operating costs, loan repayment programs and bank loans should also be considered the greatest benefits. Previous studies on the proportion of financing for the project investment and lack of BOO, BOO project focus of this paper considers the operating costs and loan repayment programs to enable smooth implementation of the project, the bank provides the maximum benefit of problem loans obtained. The main work and innovative achievements are as follows.Consider the establishment of operational costs and amortization of mathematical models, given the cost of change and twice during the operation of the project loan repayment strategy, analyze the reality of the policy of economic implications. During operation first consider BOO memory in projects an indispensable cost, i.e., operating costs. Operating costs will change with time, the scale of investment and operational changes. Therefore, you should first analyze the factors affecting operating costs, the establishment of operational cost function model; Second, because the project is funded by private investors own funds and bank loans of two parts, it is necessary to consider the repayment of bank loans and Problems amount. On this basis, the proposed project during the operation of loan repayment way twice. The results show that, in a certain time is inversely proportional to the scale of investment projects and project operating costs (ie, the more upfront investment into the period after the operation, the less operating costs); and that the proposed loan servicing twice way more fit reality. Finally, this chapter as an example of a BOO project were analyzed.Establishment of private investors and banks funding model to get the maximum benefit of the dual goals respectively, to solve them. Projects financed by private investors own funds and bank loan funds by means of a common component. Thus in addition to private investors need to get the maximum benefit, while banks also need to credit risk assessment provided by the project, and ultimately to ensure maximum benefit to provide loans. Finally, the actual situation is still the same BOO projects were analyzed for instance.