The majority of municipal governments in China’s major metropolitan areas have the financial means on their own to build Bus Rapid Transit (BRT) systems without the help or approval of the central government. However, the manner in which financing is raised will affect the efficiency and quality of the system, and these issues should be paramount in making decisions about appropriate sources of financing.

This paper explores the various mechanisms, including public and private avenues, by which BRT can be financed in China, and their relative benefits and drawbacks.