In order to solve the transportation problem for the villagers, Beihu district keeps deepening the reform of the fiscal and taxation system and innovates financing mode of public infrastructure. It applied PPP mode to work with Huashun Auto Transportation Company and carried out the public transport project in the rural area of the whole district by stages.

Beihu district government got supports on policies and capitals to ensure the project to be handled out fluently. First, the upgrading of road condition and setting of station boards would be financed by the government to ensure the hardware condition for the rural public transport to meet the standards well; second, the subsidies mode was applied to purchase the illegal operating minibus which helped to improve the software condition of rural public transport; third, 3000-yuan vehicle insurance, carrier’s liability insurance and third-party liability insurance were paid for each rural public bus by the district finance; and four, 2-yuan subsidies for each seat were paid for the public transportation company as well.

Currently, 30million yuan has been placed by Chenzhou Huashun Auto Transportation Company. The first batch of the district’s finance capitals of 2.71million has been paid-in. 16 new energy public buses were purchased for the first phase to operate the first 8 lines. The upgrading of Lutang area’s rural public transport has been finished, covering 27 administrative villages and 50,000 villagers. It was estimated that till the December of 2012, the rural public transport can be fulfilled in the whole Beihu district.