Study On The Application Of BOT In China's Urban Sewage Reclamation Infrastructure

During the past years, China's urban Sewage Reclamation Infrastructure's development was slower than the development of urbanlization. Several reasons contributes to this phenomenon, and the short of funds is the most important reason. To introduce multiform financing modes, diversify the build modes of our urban sewage reclamation infrastructure is the most urgent problem we are now facing.How to choose proper build mode to adapt our urban sewage reclamation infrastructure's characteristic is the central question this article concerns. This article introduces the characteristic of urban sewage reclamation infrastructure and analyzes the problems indwells the field of urban sewage reclamation infrastructure construction financing at first, then compares dominating modes in the financing of urban infrastructure abroad and suggest to take the BOT mode as the build mode of our urban sewage reclamation infrastructure on the basis of comparison. This article also explains the advantage of the BOT mode.Besides, this article analyzes the risk factors exist in the BOT mode building the urban sewage reclamation infrastructure, and provides ways and means to avoid these risks. This article uses Game Theory to establish "principal—agent" model of the host government and the urban sewage reclamation enterprise in the condition of the antiquated system and the BOT mode, and contrast the efficiency between the antiquated system and the BOT mode. Then give some advices on Government supervision in the BOT mode.At last, this article uses financial analysis method to demonstrate the feasibility of BOT project and analyzed the risk factors' influence to BOT project in the urban sewage reclamation field.