What are the investment modes of expressway projects?

Hello, expressway is a project to encourage foreign investment. Under normal circumstances, investors can invest in expressway projects in the following ways: (1) obtain expressway franchise through bidding to build and operate expressway; (2) Transfer all or part of the rights and interests to the owner of expressway ("transfer of rights and interests") and obtain the right to operate in expressway; (3) Obtaining all or part of the equity of expressway project legal person through equity acquisition, thus obtaining the management right of expressway ("equity transfer") involves complicated procedures, and it takes a long time to transfer the government's right to repay the loan. Therefore, investors tend to adopt a more convenient way of equity transfer, and acquire the management right of expressway by acquiring the equity of expressway project legal person.

Expressway, the mainland of China, has long been built in the mode of "building roads with loans and paying back the loans with fees" or BOT. The main source of investment funds is bank loans, and the main tolls are also used for bank repayment. BOT, namely construction-operation-transfer, is a way for private enterprises to participate in infrastructure construction and provide public services to the society. Private enterprises will undertake the investment, financing, construction and maintenance of the project, and be allowed to finance the construction and operation of specific public infrastructure within the concession period stipulated in the agreement, and be allowed to repay loans, recover investment and earn profits by charging users or selling products. At the expiration of the concession period, the private enterprise of one contracting party will hand over the infrastructure to the government department free of charge or paid.

The main investment methods adopted in the construction of expressway in China are: multi-channel, multi-level and diversified investment and financing policies that combine state investment, local financing and social financing, and gradually establish a coordinated development mechanism between expressway and ordinary highways. National highway construction will continue to implement diversified investment and financing policies, including encouraging social capital including private capital to participate in the construction. On February 20, 20 18, the Ministry of Transport of China issued the Regulations on the Management of Toll Roads (Revised Draft): expressway, inland China, will implement a long-term charging policy, and the fees collected will be used for maintenance and management in addition to repaying loans; The new toll road can only be expressway; Cross-subsidizing roads with good or bad income will accelerate the repayment of government debts.