Value System Of Feasibility Envaluation For BOT Project

From the year of 90's, with the increase of foreign investment, there are multiple methods are adopted for international capital to participate in Chinese infrastructure related projects, and BOT(Built - Operate - Transfer) become popular. To start a BOT project, the investor and operator should first get a concession agreement from the government or its management institution. Then organize a project company through investment and financing. The company hold the ownership, management and proceeds of the project during the concession period and transfer the project to the government without charge after concession period.BOT is a new method of project finance, and succeed in some countries and area, but also some problems is existed. In China, we have a short experience in BOT practice, it's good for us to avoid roundabout course in developing infrastructure related projects to learn the experience and lessons from the foreign BOT projects, and create a new way for introducing foreign capital and utilizing domestic capital in our country.This article analysis a BOT project in particular for its character, operating procedure, risk factors and the essential of feasibility study, and suggest an evaluation system to judge a BOT project for its feasibility, which applying economic analysis method for project forecasting. The study is available for government institution, investors,creditors, enterprises and bank of their decision making in participating in a BOT schedule.