What is a government investment construction project, i.e. what is its definition?

It refers to the fixed asset investment projects which are solely or jointly financed by the government through financial investment, issuance of national or local financial bonds, use of foreign government grants as well as loans from domestic and foreign financial organizations guaranteed by the state treasury, in order to adapt to and promote the development of the national economy or the regional economy, and in order to satisfy the cultural and living needs of the society, as well as for the consideration of political and national defense factors.

Expanded Information:

. p>Government investment projects are different from general investment projects, the main body is a government department, the source of funds with public ****. Society needs to take advantage of the government's coercive power, the advantages of centralized resources to serve the public, so the government investment projects usually have the following characteristics:

1. The government plays a dominant role in the project

Government investment projects are to the government's financial capital or commercial loans guaranteed by the government's credit input and by the government has decision-making power, the government from the project's planning, project initiation, investment, construction and later operation of the project is generally not the same as the government's investment projects, the government has the right to make decisions on the project,

Government investment projects are projects invested with government financial funds or commercial loans guaranteed by government credit and in which the government has the decision-making power, and the government gives guidance and support from project planning, project initiation, investment, construction and later operation.

2. The project has a relatively non-competitive and public **** sex

Government investment projects are an important part of the economic system and social life system, government investment projects are generally for the public service, not simply for the individual or individual units, therefore, the government investment projects have the characteristics of public welfare. And government investment projects also has a relative monopoly, the degree of competition is not as fierce as other industries, the return on investment is not too high but generally more stable, which means that the government investment projects after reasonable planning and adequate preliminary demonstration, the construction and operation of the environment is relatively stable.

3. Long project cycle, large amount of capital required

Most of the government investment projects are urban infrastructure projects, such as roads, bridges, ports, airports, subways and so on. The project scale is very large, the amount of money invested is tens of millions of dollars, or tens of billions of dollars, it usually takes a year or a few years to be completed. This puts forward higher requirements for the management of government investment projects in the process of construction and operation, the investment risk, financial risk, construction risk and government credibility of these projects need to be fully considered and carefully studied.

4. Project investment drives the progress of related industries, the pulling effect on economic development is obvious

The investment and construction of government investment projects, the development of manufacturing, construction and other related industries to produce a great demand for the pulling effect, thus stimulating the expansion of production, improve employment levels, activate a variety of demand for the market, accelerate economic growth. This makes government investment projects also play a very important role in promoting the diversification of social production, expanding trade and reducing poverty.

Modern economic development shows that government investment in infrastructure projects not only through its own development to promote economic growth, but also as a kind of triggering investment, can be released to the production potential of the private sector, further increase the output of society as a whole, so that the national wealth to reach a higher level, that is, often referred to as the "multiplier effect "

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5. The project has overall planning

Government-invested urban infrastructure serves the city's daily operation and socio-economic development. Different urban environments and economic bases can choose different infrastructure construction, and infrastructure and mutual substitution, such as natural gas, artificial gas, oil and coal interoperability; elevated roads, expressways, subways, bridges and tunnels complementary.

Therefore, in the demonstration of major urban infrastructure programs, should be fully based on the city's development prospects and functions, give priority to good overall planning, comprehensive consideration of economic strength and various factors, comparison and preference, which is the most important aspect of the decision-making process of government investment projects.

Reference:

Baidu Encyclopedia--Government Investment Project Management