For a long time, the expressways in China Mainland have been built by "loan to build roads and charge for repayment" or BOT mode. The main investment funds are bank loans, and the main tolls are also used for bank repayment. BOT means build-operate-transfer, which is a way for private enterprises to participate in infrastructure construction and provide public services to the society.
the private enterprise 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 pay off the loan by charging users or selling products, recover the investment and earn profits. At the expiration of the concession period, the private enterprise of the contracting party will hand over the infrastructure to the government department free of charge or paid.
expanding information
the main investment methods adopted in highway construction in China are: multi-channel, multi-level and diversified highway construction investment and financing policies that combine state investment, local financing and social financing, and gradually establish a coordinated development mechanism for highways and ordinary highways. The 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 December 2, 218, the Ministry of Transport of China issued the Regulations on the Management of Toll Roads (Revised Draft): China's inland expressways will implement a long-term toll policy, and the collected fees will be used for maintenance and management in addition to repayment of loans; New toll roads can only be expressways; Cross-subsidization of roads with good or bad incomes will speed up the repayment of government debts.
Baidu Encyclopedia -BOT
People's Network-Three Questions about Highway Construction Investment.