Research On Financing Risk Of Bt Projects In Construction Enterprises

In recent years, With the development of economy, the infrastructure construction and the people’s living standard continuously raise, requirement increasingly to the transportation, communication, municipal infrastructure and so on. A national infrastructure investment construction can not only meet the needs of social economic development on public works, also can promote and drive the growth of the national economy, so the government investment in infrastructure has become the one of the important means of government macro-control. For a long time, relying on domestic financing and bank loan mode, unable to meet the large demand for funds of infrastructure projects, also restrict the infrastructure construction in China maintained and rapid development.It has become a "bottleneck" in our country’s process of economic development.Since early 1980s, BT mode has been widely applied in the field of the infrastructure construction of transportation, telecommunications, and municipal construction in developed countries. With. the development of the economic financing market and the mature of capital market in China, BT mode, a new financing and investing mode, which is strongly supported by government, banks and financial institutions, has efficiently alleviated the contradictions of capital shortage. At the same time, large and medium-sized state-owned construction enterprises that are competitive in financing and construction management, have participated actively in the investment and construction of big-scale infrastructures by applying BT mode.By seizing the high-end construction market, these enterprises have promoted their own restructuring and upgrading, realizing the value preserving and adding value to the state-owned assets.This paper mainly studies the advantages, disadvantages and the amelioration of BT mode application (investing and constructing general subcontracting) by introducing BT mode and project construction general subcontracting as background knowledge. This paper takes Wuhan second ring road BT project construction as an example to describe how the investor operates this project by applying BT mode, the financing channels, the risks born by such financing channels to the investor. This paper provides the reference for the investors applying BT mode on how to avoid the risks of project financing and how to improve the level of project operation.