TOT is the abbreviation of English Transfer-Operate-Transfer, namely Transfer? Business? Hand it over. TOT mode is a popular project financing method in the world, which usually means that government departments or state-owned enterprises transfer the property rights or management rights of a well-built project to investors for management. The investor can recover all the investment through operation within the agreed time limit and get a reasonable return. After the contract expires, the investor will return the project to the government department or the original enterprise. The application of TOT mode is generally for the smooth progress of BOT mode. Usually, the government will package TOT and BOT projects and operate them together.
TOT mode operating program
1. Make a TOT plan and submit it for approval. The transferor shall first prepare a TOT project proposal in accordance with relevant national regulations, seek the consent of the competent department of the industry, and report it to relevant departments for approval in accordance with existing regulations. State-owned enterprises or state-owned infrastructure managers can only implement TOT mode with the approval or authorization of state-owned assets management department.
2.TOT project bidding. According to national regulations, the transferee of TOT project must be selected through bidding, and its procedures are basically the same as BOT, including bid preparation, prequalification, preparation of bidding documents, bid evaluation, etc.
3.SPV reached an agreement with investors through negotiation to transfer all or part of the operation rights of the project in a certain period of time in the future and obtain funds.
4. The transferor uses the obtained funds, and in most cases, the obtained funds will be used to build new projects.
5. After the expiration of the project, recover the transferred project. Upon the expiration of the transfer, the assets shall be handed over to the original transferor without debt, guarantee or good facilities.
The main benefits of TOT project financing are:
(1) Revitalize the existing assets of urban infrastructure and open up new ways to operate the city. With the acceleration of urban expansion, a lot of funds are urgently needed for infrastructure construction. In the face of huge capital demand, local financial investment can be said to be? Nine Niu Yi hairs? Cash-strapped? . On the other hand, through decades of urban construction, the financing function of some operating assets in urban infrastructure has been idle, not fully utilized, and even assets have precipitated. How to revitalize these existing assets and maximize their social and economic benefits is a problem that every city operator must face. TOT project financing model is a business model designed for this phenomenon.
(2) Increase the total social investment, promote the development of related industries with the development of basic industries, and promote the stable growth of the whole social economy. The implementation of TOT project financing method has revitalized the existing assets of urban infrastructure and guided more social funds to invest in urban infrastructure construction. Investment? This angle has stimulated the rapid development of the whole related industries and promoted the steady growth of social economy.
(3) Promote the rational allocation of social resources and improve the efficiency of resource use. Under the planned economy mode, the management of public facilities has always followed the monopoly management mode, and it is difficult for other social subjects to enter the basic industry. Because of the monopoly itself? Chronic disease? , making the long-term operation level of public facilities low and the efficiency difficult to improve. After the introduction of TOT project financing mode, due to the role of market competition mechanism, it has added invisible pressure to various infrastructure institutions, prompting them to improve management and production efficiency. At the same time, the business units that generally participate in TOT project financing are professional companies. After taking over the project management right, they can give full play to the advantages of professional division of labor and use their successful management experience to quickly improve the efficiency and economic benefits of project resources.
(4) urge the government to change its ideas and functions. After the implementation of TOT project financing, can the government really achieve it first? Run a city? It is not only a slogan, but also a rigorous, meticulous and scientific work; Secondly, the government has increased new financing methods and increased investment in urban infrastructure. The thinking mode of government decision-making will not only focus on? Incremental investment? And always notice? Stock revitalization? ; Thirdly, after the introduction of infrastructure into other business entities in society, can the government really fulfill it? Referee? Function, focusing on strengthening urban construction planning, guiding the direction of social capital investment, better serving enterprises and supervising their economic behavior.