Study On Problems Related To Bot Project Financing In China

As an unique way of project financing BOT has been applied successfully in many countries. It is an effective solution to relax government pressure on infrastructure construction and to enhance investment benefit. With the rapidly economic development in our country the contradiction between lack of fund and shortage of infrastructure has been enlarged. To introduce BOT project financing is a way out to deal with this contradiction and push forward the construction of infrastructure in our country.The result of BOT project financing is critical for it is mainly used in large-scale fundamental infrastructure. So it is very important to have a comprehensive feasibility study in the beginning. To set up and perfect evaluation index system is necessary for strengthening project management and improving the investment decision-making. On the other hand BOT project has the features of large scale, long period and various aspects involved. Often a project company is found consisting of many shareholders, which will apply loan from several finance organizations and organize the construction and operation of the project. The production or service are offered to state-owed unit or take toll from users directly. Due to those properties BOT project is influenced by many factors and full of risks. Therefore it is a vital part in BOT project to manage risks properly.This dissertation covers four parts:Part one: an introduction on BOT project financing.First the definition and derivation styles of BOT project financing are introduced. Then follows an analysis on the features, fitted areas, concerned parties and the financing structure.Part two: the feasibility of BOT application in ChinaThis part instructs the background, present situation, necessity and probability of BOT application in China. By discussing the key factors that influence the success of BOT project financing, an evaluation index system for thefeasibility of BOT project financing is set up and a case study through this system, which use fussy comprehensive evaluation method, is given to evaluate the feasibility.Part three: risk management of BOT projectIdentify the risk in BOT project according to the characteristics of it. The risk is divided into controllable risk and uncontrollable risk. At the same time concrete method for risk management is put forward correspondingly to every kind of risk.Part four: problems and countermeasures in BOT application in China. This part analyze the problems existing in the application of BOT project financing in China and put forward countermeasures to deal with them.