The Analysis Of Non-system Risk Affect On Concession Period In BOT Project

BOT financing pattern realizes the government policy of accumulating founds to provide public product by private investment management, appoint construction founds to the users by charging .The modern BOT financing pattern is a system with complex right, obligation and structure . The founds scale of modern foundation establishment is large, the system is union coherent ,which is a precondition;project establishment management is its object;modern investment and finance technology unite closely which is its main content. The modern development of government concession policy and the appearance of project finance system are the system factors of the appearance and maturation of the BOT financing pattern.BOT project includes a great number of uncertain factors because of great founds requirement, long construction period and complex participant relations, so it's difficult to fix on BOT concession period . Concession period is the center of BOT project, the essential is the shares of the project profit and risk between government and project companies. If the period is fixed too short, the project companies can not make sure the reasonable profit;if it's too long, which will damage the benefit of the country. So it's very important to fix on concession period reasonably.On one hand, the fix of concession period is affected by concession period patterns, different patterns have different decision patterns;on the other hand, the length of the period is affected by risk, different risk shares decide different length concession periods. The effect of risk to concession period is to share different risk factors and affect the fix of investment return rate;reasonable investment return rate is always a difficulty in BOT project. The paper takes the market risk in road BOT project as research object, to the questions of our road BOT project, on the basis of capital price theory and the measure of market risk, it fixes on the investment returnrate of BOT road project and establish concession period decision model .The thesis has certain reference value in fixing on BOT concession period.