Study On Risk Management Of BOT Project And Its Case Analysis

The infrastructure is a foundation of one country's economic, which plays an indispensable role in economic development. But the construction of the present infrastructure of our country has been under-capitalized all the time. As one new-type financing mode, more and more attentions have been paid to BOT financing mode for its unique superiority. However, because of BOT project's long duration, a wide range of knowledge, and the big injecting capital, the risk management of BOT project becomes complicated and difficult, that has become the question which lots of researchers pay close attention to. So this paper regards BOT project as the study object, carries on a deep discussion to the project risk management under BOT financing mode. Meanwhile, this paper established a case study based on the BOT project of DaYong road Longhua section of Chongqing. Finally, this paper probes into the question existing in the present project risk management of BOT in China, as well as proposes the suggestion in order to enhance BOT project risk management.This paper initially defined the conception of BOT and described its present situation as well as development, and then portrayed the working procedure of BOT clearly. On this basis, according to the classical framework of project financial management, the analysis of risk recognition, risk evaluation and risk avoidance are demonstrated one by one. At last, this paper employed the risk management studies to the BOT project of DaYong road Longhua section of Chongqing. This paper analyzed the project's risk using AHP. The results indicate that completion risk, management and administration risk, technological risk and exchange risk are more important in this project.Meanwhile, this paper proposed some methods to control these risks, including signing contract of "paying keying", signing supervise and technological service contract, adopting currency extends bill. Finally, it probed into the implementation state of BOT project risk management in the present stage of our country. This paper pointed out that there are still some insufficiencies: imperfect laws and regulations, low examining and approving efficiency,big foreign currency risk, limited financing channel is, lagging out risk management and etc.. Due to the above deficiencies this paper proposed some methods to enhance BOT project risk management, including: strengthening legislation of BOT project financing; opening the financial insurance market; setting up the intermediaries of BOT project risk management; developing domestic-investment BOT project; strengthening training to the administrative staff of risk management, etc..