Innovative Financing Methods for Construction and Maintenance of Infrastructure in China
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This report first provides a historical review of the financing methods that the Chinese government has used for infrastructure construction and maintenance and identifies the financial shortage currently faced by many Chinese provincial governments in their local infrastructure financing. The report then introduces some innovative financing methods used by several of the more developed countries with most of them proven to be effective and actionable in addressing the issues created by financial constraints. The report finally gives some suggestions and recommendations for relevant administrative units in local government about how to adopt or adapt these methods by taking into consideration the specific economic and political contexts of China. (As infrastructure is such a broad and complex subject, the methods introduced in this report will mainly focus on transportation infrastructure. There are other domains of infrastructure such as telecommunications, power and energy, which are a bit different in terms of the stakeholders, technology, and dynamics. Accordingly, this analysis and its recommendations can be applied to these other domains only mutatis mutandis.)