The Problem And Countermeasure Study Of BOT Project Financing Mode In China's Application

The meaning of BOT is namely "build, operate, transfer". As the project organizer, after acquiring the franchise right of certain infrastructure from the state or local government, the financial group or investor from home or broad will organize a project corporation and subsequently take charge of the financing, designing, building and operating of the project. When the charted period finishes, the project will be transferred to the government gratuitously. This financing and building mode has sprung up since the 1980's and has been being applied in the building of infrastructure. There is always a conflict between the burdensome building tasks and the shortage of building funds during our nation's economy-developing period. As a newly-emerging mode of project financing charactering making use of private capitals to build up our infrastructure, BOT provides an effective method of alleviating this conflict. It can be seen from the BOT practice of our country in recent years, BOT financing has made great progress and has been playing an important role in accelerating the development of our infrastructure building, breaking down the monopoly condition in the field of infrastructure, breaking through traditional mode of introducing capitals, widening the channel for attracting foreign funds, enhancing operating efficiency of the project, as well as promoting the macro-controlling level of the government in important and huge projects.At the same time, however, a series of problems have been brought into light subsequently. Though many BOT projects emerged here and there in our nation, the high tide of BOT has not come into existence as anticipated all along, the number of BOT projects in negotiation being more than that in practice and much more than that of successful. It can be said that the BOT application in China is unfavorable. Though BOT has had a good influence on the infrastructure, many problems exposed to the air in practice lead to the fact that its potential in infrastructure building has not been exploited completely. There are several reasons for this passive situation. On one hand, it has not been very long since BOT mode began to develop in our country, so people concerned have not had a deep understanding of the elementary knowledge, working process and operating skill of BOT financing, the operation not being normative and the process not strict. On the other hand, the present macro-environment of our nation which is in the course of economic transition is not ideal and many institutions as well as auxiliary measures are scarce enough. Obstacles to the effective development of BOT...