Rail transit investment and financing research

Summary: Municipal utilities industry to fully open the market and market infrastructure is the recent and future period of time where the focus of Investment and financing reform, municipal utilities and the construction of historical debts, "municipal public utility industry is the cause, the Government should turnkey "The concept has not suited to the times. the original government-led Investment and financing mode challenges, according to China's national conditions and the urgent need for specific stages of Development in different cities in the specific circumstances of the Investment and financing model innovation. overview of the current world Investment and financing of municipal traffic Engineering, as well as China's rail transportation currently used in major construction projects, Investment and financing. and introduced a new type of grant financing model-BT model, in China's rail transportation construction projects, applications and prospects.

Keywords: municipal traffic Engineering, Investment and financing, BT mode

The former State Development and Reform Commission Minister Ma Kai has made it clear that the Development of Investment and financing system reform program, after the establishment of the State Development and Reform Commission is a major task of changing the functions of the State the direction of Investment and financing system: based on "Who in making Investment decisions , who benefits, who bears the risk "principle, the national macro-control, the better the market mechanism to play a role in the regulation of economic activity, business Investment to establish the dominant position, and regulate government investment behavior, and gradually establish autonomous decision-making of investors, banks independent loan approval, a variety of financing, intermediary service standards, strong government regulation of new investment and financing system. countries the core objectives of the investment and financing system reform are: the introduction of the whole social capital in all areas of economic Development, will use market mechanisms to investment , financing, exit, construction, operation, management and other links. to form the efficient allocation of resources in society as a whole from the point of view in all regions, municipal and public sectors to implement the full liberalization of the market and infrastructure market, is where the recent and future investment for some time financing reform focus due to the construction of municipal public facilities, historical debts and "municipal utility industry is the public good. the Government should be turnkey," the concept of binding, leading to investment and financing channels in this area is not smooth, facilities, lack of capacity, inefficient operation and many other issues. municipal transportation construction projects have a strong public interest, building a huge demand for funds, the investment recovery period is longer and even harder to direct recycling and other economic characteristics, and more for municipal public works, general construction by the city government-led, funded mainly from government funds into the same time, with the market-oriented investment system continued to deepen. the original government-led investment and financing mode challenges, according to China's national conditions and the urgent need for specific stages of development in different cities in the specific circumstances of the investment financing innovation.


A world of investment and financing of urban traffic Engineering model

Investment and financing of urban transport from around the world the basic mode of operation of urban transport investment project construction and the practice situation, a major international following pattern: (1) government investment, by the direct management of administrative agencies, (2) government investment the establishment of state-owned enterprises management here said the state-owned enterprises, should be authorized by the government-run public utilities with China's "state-owned enterprises' understanding of the concept is different, (3) government investment through bidding to signed a lease contract or concession contracts, etc., commissioned a professional company management, (4) project financing, franchising, (5) a wide range of market financing, operation and management by the joint-stock companies which subsection (1), (2 ) ways are government investment, government operations, referred to as A mode (3) ways as government investment under the operation of the market, referred to as the B mode, such as the Manchester Metro, Shanghai Metro Line, etc. (4) types of project financing, franchising model, referred to as C mode, such as Bangkok and Kuala Lumpur light rail projects are the BOT and other project financing. (5) ways collectively referred to as investment diversification and under the conditions of market operation mode, referred to as D mode, such as investment and financing mode MTR in practice, for a particular project, there may be a mixture of several models, but more than the basic model is nothing more than a few.


2 China's current investment and financing of urban transport the main form of

2.1 rail transit project the main form of capital raising
Capital construction projects to meet the requirements of the proportion of China's cities are actively exploring rail transit project financing of capital in various ways, including the use of RTO and try to IPO and other securities-based financing model. But look at the actual operating conditions, capital Kim raised the following main channels and methods (1) Local government financial direct investment, mainly from the project funds to local government's financial investment by the local government investment company set up rail transport as the exercise of state-owned shares on behalf of the investor to form the project company. (2) the use of expected cash flow financing of projects of capital would be within a certain number of years of future expected cash flows as a project finance basis, generally in the minutes and other documents the government finalized in the form in this basis, the bank replaced by other alternative forms of equity capital subject to specific financial inject liquidity into the money as capital investment in the proposed project (3) the use of trusts in the form of loans raised for the project entrusted to investment capital by rail companies, investors delegate investment trust companies, using the project along such as security of land revenue base, through the issuance of "project finance trust scheme" in order to raise funds, and investment by the rail companies, investors entrusted to trust and investment companies to invest in the proposed rail transit project. this operation to some extent bank loans can not solve the capital problem as a project, but also has approved part of a small, easy to operate, the advantages of rapid availability of funds (4) the use of sale-leaseback of existing assets to raise cash means project capital. a "sale the leaseback "financing leases. the station, the main lines and other real estate sold to leasing companies, will receive the transfer of assets into income as capital rail projects, while rail transport operators to lease the leasing company the use of assets, and pay rent. in this way to raise low cost capital projects, simple operation, less so on the approval link.


2.2 rail transit construction the main form of debt financing
China's urban rail transit projects generally use debt to raise funds to domestic commercial bank loans, mainly corporate bonds, foreign government loans, supplemented by diversified mode of financing (1) domestic bank loans. Urban rail transit project as a large municipal public welfare project, with an important feature of business sustainability, and to rely on government credit, the lower the likelihood of liquidation and its assets, rights and interests over time have been added zoom feature, so the loans of the main factors words, the risk of rail transport companies is relatively small, the other, along a variety of projects to promote rapid economic development, local fiscal revenue and project revenue growth of space are large, well-developed projects through repayment plans and programs, the project operation after a certain period, usually have a stable cash flow and an acceptable ability to repay, so as to provide the possibility to obtain bank loans (2) corporate bonds corporate bonds to raise low cost of capital, financing the cost of locking for a period longer and interest may be allocated to different years, a principal due on the rail project to optimize the financial structure is very favorable, more and more investment in rail traffic over the company's favor. (3) commissioned a collection of loans, which is the financial sector concern about the recent financial innovation one of the species, by way of a centralized credit, with the local government reached a strategic cooperation agreement, focused on financial resources for large-scale infrastructure financing, loan approval and approval procedures are relatively simple, low cost of capital, and scrollable release will help implement sustainable rail investment program (4) foreign governments and international financial organizations. foreign government and the World Bank and other international financial organizations, but also for urban rail transit project to raise funds for construction of an important channel and relatively low interest rates with a comprehensive, long duration, etc., but the options are more strict and more complicated procedures, and rail transportation project in the current equipment localization rate constraints, only part of the investment in equipment can be imported to the foreign government loans, has certain limitations.

From a practical point of view, the current government-led debt-based financing model is the investment and financing of urban rail transport main mode, with 3 points advantage. First, only a small amount of cash into the financial, as much as possible the use of government-backed bank loans, credit absorption edge, financial leverage by playing the role of financial resources to enlarge the effectiveness of Links to free download http://www.hi138.com help alleviate the pressure on the government current cash expenditures. The second is an adequate supply of bank credit funds, in place quickly, the operation relatively low cost to meet short-term large-scale urban rail transit project to complete the task of financing. Third, the cost of capital relative to debt is low, if there is sufficient credit support, you can also entrust the form of loans and other funds to attract social leisure, and further reduce lending rates.


3 BT investment and financing model in our municipal transportation projects and prospects in a wide range of applications

3.1 BT mode profile
Project financing in the 1970s the rise of the late 20th century 80 years later, some of the world countries have adopted BOT (build an operate a transfer) to attract capital, accelerate infrastructure construction, improve its investment environment to meet the internal needs of .90 years at the end. Some domestic construction unit to take the way of BOT or BT projects attract investment, in which the construction of public infrastructure systems, more of a way to use BT .2003 February 13 issued by the Ministry of Construction <<on the nurture and develop the general contracting and project management company guidance>> the first time in official national policy document published in the BT introduced the concept of the international practice on the way BT BT is normally provided by the project company to finance, investment, design and construction. final acceptance After delivery, the project owners to obtain the right to use, and within a certain period of time the contract shall be paid according to BT contract, Engineering, along with the transfer of ownership of the end of .2003, China Railway Major Bridge Engineering Group to invest in BT mode Caiyuanba Yangtze River Bridge, This is our project financing in BT's historic breakthrough in recent years, many domestic cities BT model construction of municipal infrastructure projects in the attempt, and has achieved good economic and social benefits of its model is given by the tendering party through open tender to determine the construction side by side is responsible for project financing, building and construction, completion of the project after the completion of the repurchase tender side, such as, Beijing Olympic Line subway construction and successful way of using BT carried out an international tender, in China CRC is bidding to become in 2008 by the Shenzhen Metro Line 5 BT project organizer, civil commitment to across the board, decoration and equipment installation of conventional investment and financing and construction management tasks using BT model building subways, will help promote the construction project management institutional innovation, and gradually establish and perfect the construction and management of the market competition mechanism, rational investment projects to improve the government's debt structure to ease current pressure on government funds, lock construction costs, appropriate transfer of construction risks.


3.2 The construction of infrastructure projects in BT mode characteristics
3.2.1 BT approach has the advantage
First, to ease the pressure on the government's investment in it can be an effective solution to inadequate infrastructure and shortage of construction funds, guidance and social capital to absorb the flow of infrastructure investment, the government planning and construction of the project implementation as soon as possible, reflect the social and economic advance benefits, the government have limited funds to maximize the social and economic benefits in addition can accelerate the pace of construction projects to ensure project quality through the introduction of advanced technology and management methods to improve the infrastructure investment and management structure to effectively implement the management, design, integration of resources and closely co-ordinated construction, reducing construction management and coordination links with the large building good business credit, reputation, good at organizing large-scale construction and technology, management, human resources and social resources, reduce project difficult to implement and improve operational efficiency and project quality. BT model can reduce the workload of coordination and management of the owners, because BT's commitment to the owners of the project financing, investment, design and construction work, and is responsible for managing subcontractors and suppliers can reduce the government's human, technology and management pressures, saving management costs. Finally, this model can save investment. BT fixed-price contracts are normally used by contract workers locked building and schedule risk investment, conducive to the introduction of high-quality construction team, standardizing the construction market, improve the level of the building construction, to achieve safety, ensure the schedule and quality requirements, according to the requirements of the implementation of BT project, only a good social reputation and strength of the "national team" have the ability to participate in the implementation of enterprise, the low qualification, poor technology and management level not high, non-standard business, "block" at the door.

3.2.2 BT The drawback
Currently, the international model has not yet formed a common contract for BT Text, the lack of a complete set of solutions engineering claims, disputes accepted international practice, which promote the use of BT mode is an obstacle to the smooth. BT project companies to raise capital pressure, which will bring greater risks, such as policy risk, exchange rate risks, natural risks, etc. Therefore, the project company has a strong need for BT's finance and risk-resisting ability, and must be fully in the process of signing contract negotiations, so that risk-sharing is more reasonable. the owner, since the success of the project depends largely on the BT project's financing and management capabilities, so the risk is relatively large, it is necessary to choose the strength of all aspects of the company are strong, to reduce risk.

In short, urban infrastructure investment in deepening the reform of the macro context, drawing on the Hong Kong subway, Japanese private railways and rail transport in Europe's successful experience in investment and financing models to future earnings front, engineering investment of savings, financing costs are minimized and external internal revenue as an innovative starting point of China's investment and financing of urban transport projects patterns look forward to further improvement and innovation. Links to free download http://www.hi138.com