| The economic development of one country is closely related to its infrastructure conditions, the conditions of infrastructure, to a great extend, decide the economic development speed and the comprehensive strength of the country. In consideration of state security, social public welfare, long term and large scaled infrastructure investment with high risk, Traditionally, infrastructure project is undertaken directly by government. However, with the urgent need of economic development for infrastructures, the investment approach to infrastructure purely by the government of one country has been far behind the requirements of economic development. Under such circumstances, private investment to infrastructures has been widely considered in many countries. In China, with the steady deepening of reform and open-door policy, the economy has stepped into a fast development period, severe lack of funds for infrastructure construction is existing with application of state fiscal funds or debts as the only source, so has seriously imposed a great burden on the government. In order to adapt to economic globalization and satisfy the need of economic development in China, investment channels of infrastructures in China gradually becomes diversified. Foreign direct investment, loans from international financial institutions and foreign governments as well as issuance of bond used as sources for infrastructure construction that have been popular in the past years have played an very important role in our country's economic development, but the debt of the government is steadily increasing with high risks of interest rates and foreign exchange rates. Therefore, positively seeking financing approach that does not bring about loaning burdens has been widely concerned. BOT mode, with its special characteristics, has become popular by using private funds to construct infrastructures in many countries.BOT, the abbreviation of Build – Operate – Transfer, is a new type of financing method that came into being in the world at early 1980s. The essence of the concept is that, first the government signs concession agreement (Project Agreement) with project company (PC) which is established by the sponsors, then the PC will be responsible for project financing, construction and operation, the investment will be refunded, debts will be paid back and returns is acquired through collecting fees from customers. Upon expiration of the concession period, the PC will transfer the infrastructure project to the government. With the successful application of BOT method in the past years, many countries have realized that BOT method, as a project financing mode, not only can effectively attract private fund for infrastructure construction, but also supplement the deficiency of domestic construction funds, and also bring advanced technologies and management experiences from abroad, thus reducing the operating cost and pushing the development of local industries, commerce and services. The BOT method has been widely used in many countries of the world, especially in the developing countries. Nevertheless, BOT wit its very complicated financing technique, involves many aspects like commerce, technology, laws and financing, especially the establishment of laws and regulations that guarantee the BOT application. BOT method cannot be easily transplanted from one country to another without any change. To be successfully used, the method shall be analyzed and studied further. At present, the research of BOT in China is still at a very early stage, respective laws and regulations for BOT application need to be improved further. It is the purpose of this paper, through the brief introduction of the basic theory of BOT including the concept, operating procedures, characteristics and roles theory of BOT, the comparisons and analysis of BOT practice in developed countries and developing countries ,and based on summary of the successful experience of BOT practice in Chengdu No 6 Water Plant BOT Project(hereafter refers to "Chengdu BOT Pr...
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