Indonesia Jtgd Hydropower Bot Project Investment In Operational Risk Management

Along with continual increasing of foreign exchange reserves of the People's Republic of China, export-oriented economy develops very fast, the Chinese Government encourages the enterprises and financial institutions to expand the overseas markets so as to bring along export of the domestic commodity and labor services. Foreign investment becomes a kind of inevitable choice of the history, especially how to control the risk and grasp the opportunity for investment operation of BOT projects, how to conduct risk aversion and reduce the risk for BOT projects? These are the matters concerned increasingly by our each Chinese-funded company which follows the policy of"Going Out".It is a better choice for the Chinese companies and financial institutions to go to the overseas to perform investment operation of BOT projects in accordance with the policy orientation of Chinese Government and the demand for their own development. This essay, through making research into risk management of overseas BOT projects, strives to probe how to enhance the risk management level of Chinese-funded companies in investment of BOT projects in Indonesia, to reduce and minimize the risks encountered by the BOT projects and enable the Chinese-funded enterprises to grasp the opportunity for promotion of development under the circumstances of financial crisis.As a study case with the Chinese certain company in hydropower field invested JTGD hydro-power station in Indonesia , Through the research method of combining the theory with the practice, this essay makes the argumentation by specifically applying the risk management method, technological process and tools to risk management of operation of the BOT projects according to the six processes of project risk management, risk management planning--- risk identification and risk analysis (qualitative analysis and quantitative analysis) --- risk response and risk monitoring. At the stage of risk identification, as per the basis of risk identification, it is to analyze the operation process of the BOT project, and to make risk identification by adopting method of flow chart through coordination with SWOT method. At the stage of qualitative analysis and quantitative analysis of risk, through close combination with the BOT project, for the identified risk, it is to determine by expert scoring method that the main risk is financial risk. Quantitative risk analysis shall be made to the financial risk, and feasibility analysis of the BOT project shall be carried out in terms of project net present value (NPV) and internal rate of return (IRR), and sensitivity analysis and probability analysis shall be made to the uncertain factors affecting the IRR so as to determine the probability of the financial risk. At the stage of risk response, the actual countermeasure shall be taken for each risk. At the stage of risk monitoring and evaluation, it is to establish the monitoring mechanism and to make post-project evaluation.The research into the risk management of the BOT projects has important reference value to a good management of risk in investment operation for the Chinese-funded companies and financial institutions that already followed the policy of"Going Out", and by establishing management mode of venture capital investment, it may make less detour, conduct reasonable risk aversion, minimize risk in investment operation of BOT projects, and to maximize investment return benefit of overseas BOT projects。...