Bot Financing Credit Structure Of The Legal Analysis

This article conducts an in-depth analysis of the BOT financing credit structure. As an important financing method for the public infrastructure, the feasible and successful adoption of BOT relies heavily upon the sophisticated and near-perfect credit structure. The creation and enhancement as well as maintenance of credit is the starting point of institutionalizing the BOT project financing.The author believes that BOT financing involves high risk, heavy investment and sophisticated parties which necessitates comprehensive as well as institutionalized credit system. The major objective of the credit system is to ensure the realization of rights and interests of parties involved and to minimize the risks to the greatest extent. Under the BOT credit system, the significant credit basis is the future asset which is supported by the current asset featured in the guarantee and contract form. The effectiveness of BOT credit structure is dependent on the support of the current legal system and shall be ensured by the fact that the credit structure arrangement is accepted and implemented by the law.The article is divided into four parts:The first chapter is on legal definition of BOT financing credit structure. In this chapter, the author analyses the relation between them in the legal phrasing while at the same time points out that different financing needs require different credit structures and the nature of a effective credit structure is the legal right structure. The fundamental differences between BOT and other traditional financing methods determine the difference between their credit bases. Following that, the author generalizes three features peculiar to BOT credit structure: orientation toward future asset, the credit support of current asset to future asset and its the dynamic state.The second chapter relates to the inner hierarchy within BOT financing structure. In this chapter, the author categorizes three hierarchies of BOT financing credit bases: the key basis of BOT credit structure is the future cash flow of the project which is ensured by the current project asset. Additionally, the parties involved in the project are the most important part of the credit structure since they enhance the credit class...