What Are the Different Types of Road Infrastructure?

Infrastructure refers to physical engineering facilities that provide public services for social production and residents' lives. It is a public service system used to ensure the normal conduct of social and economic activities in a country or region. ^[1]

It is the general material condition on which society depends for survival and development. Infrastructure "Infrastructure" includes not only public facilities such as roads, railways, airports, communications, water, electricity, gas, etc., which is commonly known as physical infrastructure, but also social undertakings such as education, science and technology, medical care, sports, culture, etc. Infrastructure ". ^[2]

Infrastructure Infrastructure construction has the so-called "multiplier effect", which can bring aggregate social demand and national income several times the amount of investment. Whether a country or a region's infrastructure is complete or not is an important basis for its economy's long-term sustainable development.

In the 1930s, in response to the unprecedented economic depression, US President Roosevelt introduced the famous "Roosevelt New Deal". One of the important policies is the government-led large-scale infrastructure construction. These infrastructure projects not only improve Employment, increased public income, and laid a solid foundation for the great development of the US economy in the later period.

At present, in order to cope with the huge risk of economic downturn caused by the global financial crisis and many domestic factors, the Chinese government has launched an economic stimulus plan of "four trillion" investment. The "four trillion" economic stimulus is expected to drive economic growth by about one per year. Of this percentage, nearly half of the funds are invested in transportation infrastructure and urban-rural power grid construction. This will not only enable China to speed up its escape from the negative effects of the global financial crisis, but also expand domestic demand and stimulate China's economic development and consumption growth. In accordance with the plan of the central government, governments of provinces and municipalities across the country have focused on infrastructure projects and investment to drive economic growth. In 2008, the total investment of the whole society will exceed 16 trillion yuan.

The Guangdong Provincial Government has decided to strive to complete an investment of 130 million yuan in 2009, which is mainly used for transportation infrastructure, water conservancy projects, urban infrastructure, port water conservancy construction, public transportation networks, energy conservation and emission reduction infrastructure construction, affordable housing construction, and service industry. And education, health and other social undertakings, ecological environmental protection and other fields. In the next 5 years, in the above 10 areas, we will take practical projects and specific measures to expand domestic demand, and invest about 2.3 trillion yuan in projects that increase domestic demand. ^[3]

BOT Transportation infrastructure BOT model

In the standard BOT model, private consortia or international consortia finance themselves to design and build infrastructure projects. The project developer operates for a period of time to recover the investment according to prior agreement. At the end of the operating period, the ownership or management of the project will be transferred to the host government. The basic idea of the BOT financing model is that the government or its affiliates provide a concession agreement as the basis for project financing for the construction and operation of the project. The domestic company or foreign company as the investor and operator of the project arranges financing, assumes risks, develops construction projects, and operates the project for a limited period of time to obtain commercial profits. Finally, the project is transferred to the corresponding government agency according to the agreement. The BOT model is sometimes referred to as the "Tempo-rary Privatization" process. Other financing models

BOT Variation of BOT mode of transportation infrastructure

In the process of enterprise capital or private capital involvement in the operation of infrastructure projects, due to different types of infrastructure, investment and financing return methods, and project property rights, different types of BOT methods have emerged. For example, BOOT Transfer) form, BTO (build-transfer-operate) form, BOO (build-own-operate) form, DBOT (design-build-finance-operate) form, BLT (build-lease-transfer) form, etc.

(1) BOOT mode

BOOT (Build-Own Operate-Transfer), that is, build-own-operate-transfer, is a private partnership or an international consortium financing construction of a basic industrial project. After the project is completed, it has ownership and operation for a specified period of time. Hand over the project to the government. In the BOOT method, private individuals have both management rights and ownership. Taking the BOOT method, the period from the completion of the project to the transfer to the government is generally longer than the BOT method.

(2) BOO mode

BOO (Build-Own-Operate), that is, construction-owned-operate, the contractor builds and operates an industrial project according to the concession granted by the government, but does not transfer this basic industrial project to the public sector. In BOO projects, the project company has the right to own and operate the project facilities without any time restrictions.

(3) BTO mode

BTO (Build-Transfer-Operate), that is, build-transfer-operate. For industries related to national security, such as the communications industry, in order to ensure the security of national information, after the project is completed, it will not be transferred to foreign investors, but will be transferred to the host country government and operated by the host country's monopoly company. Or run the project with the project developer.

(4) DBOT mode

DBTO (Design-Build-Finance-Operate), that is, design-build-finance-operation. This method is concession to a private sector from the beginning of project design, until the investment is recovered during the operation period of the project, and investment income is obtained. However, the project company has only operating rights and no ownership.

(5) BLT mode

BLT (Build-Lease-Transfer), that is, build-lease-transfer. It specifically refers to a financing method in which the government transfers the project construction right, the government becomes the lessee of the project during the operation period of the project, and the private sector becomes the lessee of the project. After the lease term ends, all assets are transferred to the government public sector.

PPP Transport infrastructure PPP model

PPP is the abbreviation of Public-Private partnership in English, which refers to the cooperation between the public and private sectors of the government to complete the investment and construction of infrastructure, and to meet the infrastructure and economic development requirements. In short, PPP is a way for the public sector to provide public goods or services through partnerships with the private sector. PPP is the first franchise system developed in the UK. The term was first proposed by the British government in 1992, when it was defined as a long-term agreement signed between the government and private business, authorizing the private business to replace the government in the construction, operation, or management of public facilities and provide public services to the public. PPP itself is a very broad concept. There are broad and narrow senses. Through PPP, partners can achieve more favorable results than expected individual actions. When participating parties in a project, the government does not transfer the responsibility of the project to the investor, but shares the responsibility with the participating parties. And financing risks.

The biggest advantage of the PPP method is that it introduces market mechanisms into the field of investment and financing of infrastructure.

The specific points are as follows:

1. The introduction of competition mechanism has promoted the construction of government integrity;

2. Alleviate the shortage of funds caused by insufficient government financial resources and accelerate the development of infrastructure and utilities;

3. Give full play to the initiative and creativity of foreign and private enterprises, and improve project operation efficiency and service quality;

4. Effectively promote the improvement of market laws and regulations;

5. Promote technology transfer;

6. Trained professional talents;

7. Promoted the development of domestic financial markets;

8. As far as foreign and private enterprises are concerned, reduce capital expenditures and achieve "small investment for large projects";

9. Make use of the characteristics of off-balance sheet financing to reduce the debt burden of investors;

10. Able to make use of the characteristics of limited recourse, reasonably allocate risks, strengthen control over project income and retain a high return on investment (compared to full recourse).