Construction and Operation for Utilities Tunnel Public Project in China: An Analysis Based on G-S Interactive Finance Framework

Abstract

In reality, non-profitable government organizations, other organizations or individuals (G part) and profitable social organizations or individuals (S part) usually construct and operate utilities tunnel together. As quasi public goods, utilities tunnel public project has the character of big scale construction, high investment and long recycle period. In China, utilities tunnel project is mainly fulfilled by non-profitable government organizations and profitable social companies. This paper uses G-S interactive finance framework to analyze finance design for utilities tunnel public project in China. It also develops and deepens G-S interactive finance framework for utilities tunnel project. China’s experience is useful for other countries to construct and operate utilities tunnel engineering project.