The Hexi Sewage Treatment Plant Bot Project In Zhuzhou City Franchise Pricing

In order to not be in the dilemma with the control of Environmental contamination and the shortage of government funding, the project financing and constructing patterns of BOT becomes more and more popular on the construction of sewage treatment plants in cities of China.However,it is the key of the project success that BOT products are made prices in reason. It is not mature of studies in chartering prices that are usually base on working costs and not consider other influential factors such as many partners involved to share risks, resulting in much warp and leading BOT projects to failure with high ratio.Based on the above-mentioned questions, this article takes Zhuzhou City Hexi BOT project of sewage treatment as an illustration, using the methods of criterion combined with demonstration, qualitative and quantitative research to creat a reasonable pricing model ,revealing the risks shared by paties concerned to conduct BOT's pricing in China.This paper discusses the benefits and risks between government and investors ,bringing beneficial relations of government group,investors group and the third group.It is through literature search and expert inquiry to get the 12 kinds of risks and 22 key risk factors, as well as how the project pricing benefits from them in details. It is also discribed that BOT project's risk is shared between government group and investors group under two different kinds of risk sharing ways.This paper builds the pricing model of BOT product on the base of risk shared. It is put forward a suit of methods to calculate enable-quantify risk. The innovation of the model is that it considers sufficiently the 12 different kinds of risks, such as the risks of demand, providing, inflation, interest rate and exchange rate, working on income rate and prices.The adjustments to basic price are made according to the risks government takes on ,involving qualitative and quantitative methods,which will be another innovative method to facilitate the pricing into a more reasonable and scientific way ,so as to better the sewage treatment and realize the final purposes of both parties.