Infrastructure refers to material engineering facilities that provide public services for social production and residents’ lives. It is a public service system used to ensure the normal conduct of national or regional social and economic activities. . It is the general material condition on which society depends for its survival and development. Table of Contents [Hide] Priority and basicity Non-tradeability Overall inseparability Quasi-public property classification Rural infrastructure Urban infrastructure business model BOT model Other models based on BOT model PPP model Introduction Significance Characteristics Priority and basicity Inseparability Tradeability Integral indivisibility Quasi-public property classification Rural infrastructure Urban infrastructure business model BOT model Other models based on BOT model PPP model
[Edit this paragraph] Introduction Infrastructure refers to Material engineering facilities that provide public services for social production and residents' lives are public service systems used to ensure the normal conduct of national or regional social and economic activities. It is the general material condition on which society depends for its survival and development. "Infrastructure" includes not only public facilities such as roads, railways, airports, communications, water, electricity and gas, commonly known as physical infrastructure, but also social undertakings such as education, science and technology, medical care, sports, culture and so on. social infrastructure. Infrastructure includes transportation, post and telecommunications, water supply and power supply, commercial services, scientific research and technical services, landscaping, environmental protection, culture and education, health services and other municipal public engineering facilities and public living service facilities. They are the basis for the development of various undertakings in the national economy. In modern society, the more the economy develops, the higher the requirements for infrastructure; perfect infrastructure plays a huge role in accelerating social and economic activities and promoting the evolution of their spatial distribution patterns. Establishing a sound infrastructure often requires a long time and huge investment. For new construction and expansion projects, especially major projects and base construction far away from cities, it is even more necessary to prioritize the development of infrastructure so that the benefits can be exerted as soon as possible after the project is completed. [Edit this paragraph] Significance Infrastructure infrastructure construction has the so-called "multiplier effect", that is, it can bring total social demand and national income several times the amount of investment. Whether a country or region's infrastructure is perfect or not is an important basis for whether its economy can develop sustainably and stably in the long term. In the 1930s, in response to the unprecedented economic depression, U.S. President Roosevelt implemented the famous "Roosevelt New Deal". One of the most important policies was the government-led large-scale infrastructure construction. These infrastructure projects not only improved It created jobs, increased people's income, and laid a solid foundation for the later development of the American economy. Currently, in order to cope with the huge risks of economic downturn caused by the global financial crisis and many domestic factors, the Chinese government has launched an economic stimulus plan of "four trillion" investment. The "four trillion" economic stimulus is expected to boost economic growth by about 1% per year. percentage points, with nearly half of the funds invested in transportation infrastructure and urban and rural power grid construction. This will not only help China speed up its escape from the negative effects of the global financial crisis, but also expand domestic demand and stimulate the development of China's economy and the growth of consumption. In line with the central government's plan, all provinces and municipalities across the country have focused on infrastructure projects and used investment to stimulate economic growth. In 2008, the total investment in the entire society will exceed 16 trillion yuan. The Guangdong Provincial Government has decided to strive to complete an investment of 130 million yuan in 2009, which will be mainly used for transportation infrastructure, water conservancy projects, urban infrastructure, port water conservancy construction, public transportation network, energy conservation and emission reduction infrastructure construction, and affordable housing construction , service industry, education and health and other social undertakings, ecological environment protection and other fields. In the next five years, we will come up with actual projects and specific measures to expand domestic demand in the above 10 fields, and invest approximately 2.3 trillion yuan in projects to expand domestic demand.
[Edit this paragraph] Features Advance and basic infrastructure The public services provided by infrastructure are indispensable for the production of all goods and services. Without these public services, other goods and services (mainly refers to direct production and business activities) will be difficult to produce or provide. Non-tradeability: Most infrastructure services provide services that are almost impossible to import through trade. A country can finance and introduce technology and equipment from abroad, but it is unimaginable to directly import airports, highways, and water plants from abroad as a whole. Indivisibility of the whole Under normal circumstances, infrastructure can only provide services or provide services effectively when it reaches a certain scale. In industries such as highways, airports, ports, telecommunications, water plants, etc., small-scale investments cannot play a role. For example, the power station dam cannot be built only to the middle of the river, the airport runway cannot be left half unfinished, the light rail connecting the two cities cannot be built only half, etc. Quasi-public goods The services provided by part of the infrastructure are relatively non-competitive and non-exclusive, similar to public goods. Non-competitiveness means that the production cost of an item will not increase as the place where the item is consumed increases, that is, the marginal cost is zero. For example, for public items such as national defense, the annual defense expenses are fixed and will not increase because of a new baby born this year. Non-exclusive means that when someone uses the service provided by the infrastructure, it is impossible to prohibit others from using it; or it can only be prohibited after spending a very high cost. For such a service, it is actually impossible for anyone to use it to another person. There is a free ride when people are excluded. [Edit this paragraph] Classified infrastructure can be divided according to its location or nature of use as follows: Rural infrastructure infrastructure refers to the relevant laws and regulations of China’s new rural construction. Rural infrastructure includes: agricultural productive infrastructure, rural living infrastructure, There are four major categories: ecological environment construction and rural social development infrastructure. (1) Agricultural productive infrastructure: mainly refers to modern agricultural bases and farmland water conservancy construction; (2) Agricultural productive infrastructure: mainly refers to drinking water safety, rural biogas, rural roads, rural electricity and other infrastructure construction; (3) Ecology Environmental construction: mainly refers to the current livelihood and long-term development issues of farmers such as the protection of natural forest resources, shelterbelt systems, seedling project construction, ecological protection and construction of nature reserves, wetland protection and construction, returning farmland to forests, etc. for farmers to eat, burn firewood, increase income, etc. (4) Rural social development infrastructure: mainly refers to infrastructure construction that is beneficial to the development of rural social undertakings, including rural compulsory education, rural health, rural cultural infrastructure, etc. Strengthening rural infrastructure construction is of great significance to increasing farmers' income, narrowing the gap between urban and rural areas, and realizing rural modernization. Urban infrastructure infrastructure. Urban economic infrastructure refers to engineering facilities that provide public services for urban production and residents' lives. It is an engineering feature that is necessary for the survival and development of the city and the smooth conduct of various economic activities and other social activities. A general term for infrastructure and social infrastructure. It is particularly important for production units and is one of the necessary conditions for achieving economic, environmental and social benefits. Generally speaking, urban infrastructure mostly refers to engineering infrastructure. (1) Engineering infrastructure mainly includes six major systems: A. Energy supply system: including electricity, gas, natural gas, liquefied petroleum gas and heating, etc.; B. Water supply and drainage system: including water resources protection, water plants, and water supply pipe networks , drainage and sewage treatment; C. Transportation system: divided into external transportation facilities and internal transportation facilities. The former includes aviation, railways, shipping, long-distance buses and highways; the latter includes roads, bridges, tunnels, subways, light rail elevated, bus and transportation, taxis, parking lots, ferries, etc.; D. Postal and telecommunications systems: such as Postal service, telegraph, landline phone, mobile phone, Internet, radio and television, etc.; E. Environmental protection and sanitation systems: such as landscaping, garbage collection and processing, pollution control, etc.; F. Defense and disaster prevention safety systems: such as fire protection, flood prevention, earthquake prevention, etc. Anti-typhoon, anti-sand, anti-land subsidence, anti-aircraft, etc. (2) Divided into three categories according to the nature of services A. Production infrastructure.
Including water supply, power supply, road and transportation facilities, warehousing equipment, post and telecommunications facilities, sewage discharge, greening and other environmental protection and disaster prevention facilities that serve the production sector; B. Social infrastructure. Refers to various institutions and facilities that serve residents, such as commerce and catering, service industries, financial and insurance institutions, residences and public utilities, public transport, transportation and communication institutions, education and health care institutions, cultural and sports facilities, etc.; C. Institutional guarantee agency. Such as public security, political and legal and urban construction planning and management departments, etc. The level of infrastructure continues to improve with the development of economy and technology, with more types and more perfect services. (3) Social infrastructure generally refers to facilities such as administrative management, culture and education, medical and health care, business services, finance and insurance, and social welfare. (4) Urban infrastructure should generally have the following characteristics: A. Productivity B. Publicity and public welfare C. Natural monopoly D. Cost sinkability E. Carrying capacity F. Advancement G. Systematic infrastructure has a different impact on different periods The development, improvement and supporting facilities of urban infrastructure have different requirements. As the carrier of urban operation, urban infrastructure is closely related to the city's natural appendages including land, water bodies, mineral deposits, etc. It is built on the basis of the original natural appendages through people's processing and transformation, and is influenced by nature. constraints; when constructing and transforming urban infrastructure, natural resources must be rationally utilized and the ecological environment protected. Urban infrastructure is fixed in form. Most of the physical forms are permanent buildings, which are used for urban production and residents' lives for a long time. They cannot be updated frequently, let alone demolished and discarded at will. [Edit this paragraph] Business model BOT model In the standard BOT model, a private consortium or an international consortium raises its own financing to design and build infrastructure projects. The project developer operates the project for a period of time to recoup the investment based on a prior agreement. At the expiration of the operation period, the project ownership or operation rights will be transferred to the host country government. The basic idea of ??the BOT financing model is that the government or its affiliated institutions provide a concession agreement (Concession Agreement) as the basis for project financing for the construction and operation of the project. Domestic companies or foreign companies act as investors and operators of the project to arrange financing, bear risks, develop and construct the project, and operate the project for a limited time to obtain commercial profits. Finally, the project is transferred to the corresponding government agency according to the agreement. Sometimes, the BOT model is referred to as a "Tempo-rary Privatization" process. Other Financing Models Other Models Based on the BOT Model When corporate capital or private capital intervenes in the operation of infrastructure projects, due to different types of infrastructure, investment and financing return methods, and project property rights forms, different mutation models appear in the BOT model. Such as BOOT (build-own-operate-transfer) form, BTO (build-transfer-operate) form, BOO (build-own-operate) form, DBOT (design-build-finance-operate) form, BLT (build-lease) a handover) form, etc. (1) BOOT model BOOT (Build-Own Operate-Transfer), that is, build-own-operate-transfer, is a private partnership or an international consortium financing the construction of basic industrial projects. After the project is completed, it will have ownership and carry out the project within the specified period. Operate the project and hand it over to the government upon expiration. In the BOOT method, private individuals have both operating rights and ownership rights. With the BOOT approach, the period from project completion to handover to the government is generally longer than with the BOT approach. (2) BOO model BOO (Build-Own-Operate), that is, Build-Own-Operate. The contractor builds and operates an industrial project according to the concession granted by the government, but does not hand over the basic industrial project to the company. ***department. In a BOO project, the project company has the right to own and operate the project facilities without any time restrictions. (3) BTO model BTO (Build-Transfer-Operate), that is, build, transfer and operate.
For industries related to national security, such as the communications industry, in order to ensure the security of national information, after the project is completed, it will not be operated by foreign investors. Instead, the ownership will be transferred to the host country's government and operated by the host country's monopoly company that operates communications. Or operate the project together with the project developer. (4) DBOT model DBTO (Design-Build-Finance-Operate), that is, design-build-finance-operate. This method is to franchise a private sector from the beginning of the project design until the investment is recovered and investment income is obtained during the project operation period. However, the project company only has operating rights but no ownership rights. (5) BLT model BLT (Build-Lease-Transfer), that is, build-lease-transfer. Specifically, it refers to a situation in which the government transfers the construction rights of the project. During the project operation period, the government becomes the lessor of the project and the private sector becomes the lessee of the project. After the lease period expires, all assets are transferred to the government public sector. Financing methods. PPP model PPP is the abbreviation of "Public-Private partnership" in English, which refers to the cooperation between the public and private departments of the government to complete the investment and construction of infrastructure to meet the infrastructure requirements of economic and social development. In short, PPP refers to a way for the public sector to provide public products or services by establishing partnerships with the private sector. PPP is a franchise system first developed in the UK. The term was first proposed by the British government in 1992. At that time, it was defined as the signing of a long-term agreement between the government and private companies, authorizing private companies to build, operate, or manage public facilities and provide public services to the public on behalf of the government. PPP itself is a very broad concept. There are broad and narrow senses. Through PPP, the partners can achieve more favorable results than expected by acting alone. When the partners participate in a project, the government does not transfer all project responsibilities to the investors, but cooperates with the participating parties. share liability and financing risks. The biggest advantage of the PPP method is that it introduces market mechanisms into the field of infrastructure investment and financing. The specific points are as follows: 1. The introduction of a competition mechanism promotes the construction of government integrity; 2. Alleviates the fund shortage dilemma caused by insufficient government financial resources and accelerates the development of infrastructure and public utilities; 3. Give full play to the initiative and creativity of foreign and private enterprises , improve project operation efficiency and service quality; 4. Effectively promote the improvement of market laws and regulations; 5. Promote technology transfer; 6. Cultivate professional talents; 7. Promote the development of domestic financial markets; 8. Foreign investors For private enterprises, reduce capital expenditures and achieve "large projects with small investments"; 9. Use the characteristics of off-balance sheet financing to reduce the debt burden of investors; 10. Be able to use the characteristics of limited recourse to reasonably allocate risks and strengthen control Control of project returns and retaining a higher return on investment (vs. full recourse). Modernization is often used to describe the phenomenon of social and cultural changes occurring in modern times. According to Magnarella's definition, modernization is an all-inclusive global process of cultural and social changes that developing societies undergo in order to acquire some of the characteristics of developed industrial societies.