Research On The Financing Of The Shantytown Renovation Project In Sanma District, Guiyang City

The reconstruction of shantytowns is a public-spirited project launched by the Chinese government to renovate urban dilapidated houses and improve the hard housing conditions of families.Accelerating the reconstruction of shantytowns is not only a hard task to improve people’s livelihood,but also an important task for the country’s macroeconomic control under the new normal of economic development.The reconstruction of shanty towns to promote investment and consumption is an important strategic choice for the country to deepen its economic restructuring,adjust its economic structure and ensure the harmonious development of society.Facing complex situation,there are financing difficulties in the reconstruction of shantytowns.In supporting shantytowns reconstruction,developmental finance can exert its own advantages,and bear the financing responsibility of shantytowns reconstruction from the aspects of policy driving force,asset operating capability,and the matching with project needs.This article starts with the status of reconstruction of shantytowns in the country and outlines the characteristics of the current shantytowns reconstruction project across the country and the prevailing financing conditions.The shantytowns reconstruction project has a large capital demand in terms of demolition and resettlement,land consolidation after reconstruction,and supporting infrastructure construction.However,there is a problem of inadequate financial support and it is lack of source of funds in the fund-raising process.The main source of funding at this stage is financial subsidies and the developmental finance.Developmental finance can meet the projects’ characteristics of low return and long cycle in terms of capital cost,loan terms and the structure.It is currently the most effective financing model.This paper focuses on the financing of shantytowns reconstruction project in Sanma Area of Guiyang City.Through the analysis of the project’s financing plan,this paper describes the business model of developmental finance support for shantytowns reconstruction and suggests the new developmental finance path.Developmental finance provides continuous support for shantytownsreconstruction.Looking forward to the next few years,developmental finance will continue to be the main source of financing for shantytowns reconstruction.Various new types of financing reform will be a powerful complement to the developmental finance.This paper proposes further developmental finance support from the perspective of government and financial institutions and provides ideas for the the new three-year plan for shantytowns reconstruction.