The Key Factors’ Analysis About The Franchise Agreement In The Urban Sewage Treatment Projects Used BOT Mode

In the 21st century, our country attaches great importance to the development of sewage treatment business. But the construction and operation of sewage treatment projects need amounts of money. It is very difficult to adapt to the rapid development of sewage treatment plants for the government’s limited investment. At the same time, the high cost of sewage treatment, low operation efficiency and management level, increase the burden of the government. The implementation of the urban sewage treatment BOT projects can help the government to get rid of the shortage of funds and the predicament of low efficiency of wastewater treatment. But as a complex project financing, the sewage treatment BOT projects have the characteristics of large investment, low returns and long operation period, stakeholders and complex. They have more risk in the future operation.This paper is based on the the analysis of theory research of the urban sewage treatment BOT project model in China, discusses the framework content of BOT project of franchise agreement, focuses on each of the key factors in the concession agreement, lists four key factors including the risk factors, the concessi-on period, the concession price and credit. And it proposes the solutions to the risk, concession period decision enhancerment.Also it analyzes the key factors in the design application of the concession agreement negotiations which will be verified by the case eventually. These mentioned above have important theoretical and realistic significance to in the implementation of urban sewage treatment project concession, effective and standard concession agreement, control and reduce the risk, to ensure the success of the project operation for our country’s government.