China's Foreign Loan Project Owners In The Tender Stage Of Risk Management Study

The Loans from international financial organizations such as The World Bank and Asian Development Bank as well as the Loans from foreign government has become one of important sources of fund for China's municipal construction and enterprise investment. The characteristic of this kind of projects in government external debt and utilization of foreign capital make a big distinguish from those projects which invested by domestic fund in many aspects. Due to this reason, most of investors and project owners lack experiences of operating and management the project risks successfully. Whether or not can the risks be controlled effectively during the bidding phase will determine the final succeed of project.This paper reviewed the course of China's utilization of loans from international financial organizations and foreign government of past two decades. Through concluding the peculiarity of the Loans and its'project risks, the author introduced a brand-new concept of overall risk management, which presents an objective, scientific, dynamic and perfect risk management system for this kind of projects with the feature of the management being made throughout the overall process of the construction for all risks with a complete organization based on the supports of environment system, object system, process system and method system. In order to avoid and reduce the project risks more effectively, the author analyzed all potential risks faced by the projects'owners during the bidding phase through the actual case study. Meanwhile, the author put forward corresponding solutions according to her years practicing experiences.