Application Of ABO Model In Maqiao Highway Project

The total mileage of highways in China has reached 5 million kilometers but that of the secondary and higher-level highways in Gansu province is only 15,800 kilometers.As transport security remains a key constraint to and guarantee for local economic development and completing the building of a moderately prosperous society in all respects,highway project construction remains as a major measure for economic development and poverty alleviation.In the west part of Gansu province,the existing roads are of low grade and the facilities are old and aging,which cannot meet the needs of economic development and tourism consumption,becoming a core factor restricting the regional urban planning and economic development.The fact that the local government has a tight budget and insufficient funds and the state has further tightened the PPP investment projects has resulted in demanding project storage and low marketization of regional highway transportation,hence insufficient attraction to social investors.Therefore,how to change the way of thinking to innovate the financing mode,speed up the construction of highway projects,improve the regional traffic conditions and promote the development of local economy based on the current situation of the region has become the concern of all circles of the society.Meanwhile,some effective investment and financing methods have emerged in the traffic construction industry,which have solved the current dilemma.This paper focuses on the highway project construction in Subei county of Jiuquan Region in Gansu province,analyzes the validity and feasibility of ABO in financing and managing highway traffic project construction under the PPP framework while taking ABO with financing,construction and operation functions as the implementation mode of innovation.It aims to solve the financing difficulties in transportation construction in underdeveloped area in the Northwest part of China.This paper analyzed the policies and laws followed in current highway traffic development and the macro background of economic development,clarified the history of the typical PPP mode for government and social capital cooperation and established the theoretical frame using theories in management and economics to explore the application value of the ABO mode in highway construction.It further reviewed literature home and abroad on the PPP mode and case and ABO mode in the field of highway traffic construction with public goods attribute and refined related concepts and theoretical achievements to establish the topic.It adopted the ABO mode to carry out the Maqiao highway project in Subei of Jiuquan,analyzed the feasibility of the ABO mode based on the necessity and significance of the project implementation.It moved on to construct the application framework for the implementation of Maqiao project from the perspectives of project introduction,operation mode,financing structure,risk allocation and so on.Then,in accordance with the characteristics of the region and those of highway projects,it demonstrates that in the present situation of PPP investment contraction,high threshold and implementation difficulties,the adoption of the ABO mode in the Maqiao highway project for public welfare by the authorized state-owned enterprises is advantageous not only to the fast and efficient construction of the project but also to the enhancement of the internal governance of state-owned enterprises.This mode also helps to make state-owned enterprises to become bigger,stronger and more outstanding.Finally,this paper puts forward a series of time-effective and feasible countermeasures and suggestions on how to properly solve the problems existing in the road project construction under the condition of insufficient marketization and how to better promote the application of the ABO mode in the road traffic and regional development in western China.