Reasearch On The Risks And Concession Period Of Highway BOT Project Financing Model

Practices indicate that the risk management is the successful key of the BOT Projectfinancing.This Thesis with the BOT Project Financing theories and risk management theories asfoundation,combining the domestic and international BOT practice,the risk management of BOTProject Financing has been roundly and deeply researched.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 BOTconcession period .Concession period is the center of BOT project, the essential is the shares ofthe project profit and risk between government and project companies. If the period is fixed tooshort, the project companies can not make sure the reasonable profit; if it's too long, which willdamage 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, differentpatterns have different decision patterns; on the other hand, the length of the period is affected byrisk, different risk shares decide different length concession periods. The effect of risk toconcession 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 themarket risk in road BOT project as research object, to the questions of our road BOT project, onthe 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 certainreference value in fixing on BOT concession period.