Big Korea Highway Bot Project Financing Risk Management

As China's market economy has developed rapidly, various supporting infrastructure in China's national economic development plays an increasingly important role in the construction of infrastructure. Highway projects, the more important to national construction require substantial financial support. At this stage of China's infrastructure construction funds relative tension in the construction of highways. It has diversified financing channels. The study of BOT financing models in China has deeply influenced, but many areas have yet to be explored.The focus of this paper is risk management in the mode of BOT project finance. It has studied highway BOT project, Application of concept and theoretical research results which of domestic and international risk assessment and risk management, analyses and evaluated the financing risk under the mode of BOT, The evaluation results for the risk management of the project to make recommendations accordingly.The article first introduced risk management under the mode of BOT project financing, which summarized the highway financing risk identification. On the basis of this analysis the BOT project financing risk analysis and assessment, the various methods of comparative analysis and risk evaluation has been comprised. Then identified to DaLi-highway BOT project financing risk assessment for the application of the methodology FAHP. Next on the BOT financing the general risk management strategy, and this strategy for the risk management of highway projects in a specific implementation plan.The article substantial part of the main text and charts on the highway-financing BOT projects to identify risk classification, analyses each risk factors in-depth. then used FAHP evaluation of the general steps, constructed the judgment matrix of the project financing risk, through the calculate result we known that economic risks, legal risks and completion risk are more important. Therefore proposed by choosing fixed-rate contracts, the use of financial hedging instruments, agreed to share agreement for the purchase of insurance, guarantees and means to control the economic risk and legal risk. The risk of can not be completed mainly from in this three areas: the completion risk, the risk of cost overruns and delayed completion. We must manage these risks. It mainly concentrated in the construction contract signed, energy security agreement, the establishment of the escrow account, seek to government policies toward, the management of purchase materials and other areas.Finally, a major highway-financing of the key elements of risk management is obvious, The proposals from the principles of risk allocation and risk-sharing partner, Some rationalization of risk control recommendations were gave to these two main aspects.