What is BT investment invitation for construction projects?

BT is the abbreviation of English Build and Transfer, which means "build-transfer". It is a financing method for the government to use non-government funds to carry out non-operating infrastructure construction projects. BT mode is a transformation form of BOT mode, which refers to the process that the project company hands over the operation of the project to the owner after general contracting, financing and construction acceptance, and the owner pays the investor the total investment of the project plus a reasonable return. At present, adopting BT mode to raise construction funds has become a new project financing mode.

BT mode operation

1. The government starts the project according to the needs of local social and economic development, completes the preliminary work such as project proposal, feasibility study, planning and approval, and transfers the concession of project financing and construction to investors (legally registered state-owned or private construction enterprises). Banks or other financial institutions provide financing loans for the project according to the future income of the project, the government signs a BT investment contract with the investor, and the investor forms a BT project company. During the construction period, investors.

2. After the completion of the project, according to the BT contract, the investor will hand over the completed qualified project to the government, and the government will repay the investor's financing and construction expenses in proportion by stages according to the agreed total price (or total measurement price plus reasonable return).

3. The government supervises the whole process of BT investment to ensure the smooth financing, construction and handover of BT investment projects. Whether the investor has the strength suitable for the project scale is the key to the smooth construction and handover of the BT project.

The so-called "BT investment invitation" means that the government chooses the final investor from the potential BT investment targets to operate the BT project.