Analysis about Business Investing and Financing Models of Urban Rail Transit

摘要

The rapid development of rail transit inevitably needs large capitalinvestments. As a huge investment in urban infrastructure projects, financing is thekey to the implementation of the construction. In this paper, the Business Investingand Financing Model (BIFM) of a Rail Transit Project is proposed which includes notonly the project construction but also the land development along the rail transit line.Its aim is to attract private capital injection through the interests in the landdevelopment. At the same time, the calculation method of the impact area of the railtransit’s development interests is amended for reasonable providing land developmentarea to investors. Finally, using the Changsha City Rail Transit Line2 (CCRTL2) asan example, the investing and financing strategy is analyzed. The result shows thatthe model can reduce the pressures of government from financing and can increasethe social benefits at the same time.