A Study On BOT Project Risk Management For Changtan West Line Expressway

The expressway project (EP) is significant in social and economic benefits. However, EP is featured by a large investment, long construction period and a complicated structure with many uncertain factors affecting construction and economic benefits. These factors with a great unpredictable and random feature, which are affected by many political, economic, social and natural external conditions, bring a great risk to construction of EP. With the reforming of EP construction management system, there are variable modes in construction of EP, which was invested by the State in the past. The principle followed is that the investor gets benefits and bears risk. Of which, BOT is a proper mode compatible with local conditions in China. Under this background, Changtan West Line Expressway (CTWLE) began to operate BOT mode, facing a certain unique risk. It is necessary and very significant to manage its risks.Firstly, the paper, at the view of risk planner, introduces the present situation of BOT construction project at home and abroad, the practicing policies of the State about BOT, study and development of risk management at home and abroad and concept, composition member, operation procedure and features of BOT. Secondly, the paper deals with the BOT features of CTWLE, combining existing problems in risk management with features in Hunan provincial EP construction. Thirdly, the risks in CTWLE are identified, classified and analyzed by means of work breakdown structure (WBS), Delphi and checklist methods after introduction of risk identification method. Fourthly, the identified risks are sequenced by means of Analytic Hierarchy Process (AHP) and major risks are screened out in CTWLE in order to have a clear understanding of risk impact in BOT. Finally, effective monitoring and control measures for some major risks identified in expressway BOT projects are proposed.The risk management study on expressway BOT is made by the author and its conclusion can provide theoretical and methodological support to government's participation of BOT projects.