Risk Analysis And Evaluation Of International BOT Projects

BOT is a newly born project financing mode. It has become internationally one of the most important financing and building modes that is applied in large-scaled infrastructure construction. And also it has become one of the most popular constructing methods in engineering construction sphere. As it is known, a lot of developing countries need to devote major efforts to the development of infrastructure construction. But what holds them back is their lack of funds, i.e. the national public finance can not afford such a huge amount of expenditure that is intended for the infrastructure construction. Practice shows that by adopting BOT mode (A mode under which a company can bring in funds from other governments or financial groups under the precondition that the host country provides guaranty and franchise), their problem can easily be solved. Yet because the fact that there is no well-performed guiding documents, that the life-circle of constructing and operating will be long and that the project will be carried out in some countries or areas which are not familiar to them, the investors and operators will confront themselves with big risks. So it is necessary to do some analysis and risk assessment on a certain project before taking part in the operation of the international BOT project. And then it is the time to decide whether to join in the project or not. This essay provides a detailed description of some international BOT projects. The analysis and classification of the risk of BOT project are also included. During the process, Analytic Hierarchy Process (AHP) is employed. The author can be greatly honored if the essay can provides some financial groups or enterprises which are about to join in BOT project with useful methods on the analysis and risk assessment.