Research On The Investment Control Of BT Project Under The Perspective Of Buy-back Contract

With the accelerating urbanization process in China, the demand for funds inurban infrastructure projects is growing. The BT (Build-Transfer) mode graduallybecomes an effective construction mode for the government to relieve the financialburdens. Thus, the investment control problem of BT project has become moreimportant.The “buy-back contract” mode is a notable feature of BT project. On the onehand, the costs incurred during the process of project investment, financing andconstruction will ultimately be transferred to the BT project sponsor through theproject buy-back process. On the other hand, the BT project investor undoubtedly hasthe control rights during the process of investment, financing and construction. Butthe BT project investor tends to have insufficient control on investment because of thebuy-back contract. So it is necessary and highly motivated for the sponsor to conductthe investment control. The thesis focused on investment control from the principle ofmatching among responsibility, right and interest in the theory of project governance,and putted the payment, responsibility and right of BT project buy-back contract intothe same framework to study the investment control of BT project under theperspective of buy-back contract. The main contents are as follows:(1) The buy-back price of the BT project was deconstructed, and the key factorsof it were identified. On this basis,41key risk factors in BT project were identified,and empirical study of risk allocation was done. For the risk allocation preference ofBT project sponsor and investor, an analysis of the overall samples and comparativeanalysis of independent samples was conducted. The research results can providesupport for the design of risk allocation in buy-back contract.(2) After analyzing the documents of allocation of control rights in public projectand the deconstruction of control rights,43key control elements of the BT projectwere identified. According to the key control elements of the BT project, the empiricalstudy of allocation of control rights in BT project was done. Similar to the study ofrisk allocation, the thesis also conducted an analysis of the overall samples andcomparative analysis of independent samples for the control rights allocationpreferences among BT project sponsor and investor. The research results can providesupport for the design of allocation of control rights in buy-back contract. (3) Through the theoretical analysis and the practices and the cases, the thesisidentified the key parameters of the buy-back price of BT project, and analyzed themechanism of key parameters on the buy-back price. On the basis of above studies,the thesis analyzed the adjustment of the buy-back price. And then the thesis studiedthe adjustment of buy-back price from the engineering change, the price adjustment,and claim, and provided with the method of managing the buy-back priceindividually.