Overseas Investment And Management Of Hydropower (BOT) Project

Electric-Power industry is the basis energy industry which has been placed as a national economic development priority. Hydropower is the biggest electricity production mode in terms of both the development and production scale. Meanwhile, it is an environmental friendly and economical production mode as well. Under the Global economics integration circumstance, fasten the speed of "going out strategy" can promote China to open to the whole world; obtain profit from the international division of labor, implement "going out strategy", support and encourage the superior Chinese enterprises to invest abroad actively and steadily, and manage transnational company. This can improve China open to the world, stimulate Chinese enterprise's competitive ability, insurance their sustainable development. This also can promote Chinese economy to go fast and healthily. The economic development of many developing countries has been severely restricted due to the backward electric power infrastructure. This is because that electric power construction will involve large amount of investment and the construction management is often very complicated. As a result of this, many countries has to search overseas investment and to rely on the external technical support in order to achieve a rapid development. So this clean and renewable energy such as hydropower has become the first alternative when a country decides to attract overseas investment especially in the low-carbon economy era. Meanwhile, many preferential policies have been adopted in order to promote the overseas investment regarding this issue.Overseas investment is the extension of the enterprise managerial activity on an international level. Apart from the characteristics as the common investment, it is more complicated and risky. On the other hand, it can effectively solve many bottleneck problems such as to avoid trade barriers, to reduce trade friction and to promote the output regarding technology, products, equipments and labors etc. It can also enhance the national competition in the international market. As a result, the overseas investment has been placed on a strategic level in the name of guaranteeing the safety of the national strategic resources, upgrading the industrial structure, increasing the value of foreign exchange reserves so as to protect the national economic securities.Based on the experience of the N hydropower BOT project in Laos, the author proposes some precautions in hydropower investment management.The main works and conclusions are as follows:1. The author briefly introduce the research status and development trends of BOT hydropower projects in domestic and overseas, and analysis the necessity and feasibility of the enterprises of our country participating the overseas BOT hydropower project investment;2. In respect of the N BOT hydropower project in Laos, the author carry out the technical and economical feasibility study, introduce the financing arrangement, insurance issues, legal and accountant affairs and the project application, the author also pay much attention on the crisis analysis and control;3. Based on the material issues met in the implementation of the project and solutions, the author proposes some reasonable suggestions to the follow corresponding project developers.The feasibility of the overseas investment project heavily relies on the following facets:the availability of the technology and economy, the fully support from the local government, and the minimization of the legal risk based on the thorough investigation on the local legal system. Eventually the overseas investors would cultivate a group of intelligent via conducting the overseas investment project. Recently, China is in a historic period which is transforming from a political and economical country to a political and economical power, from foreign economic and trade country to a foreign economic and trade power. The enterprises which aim to invest overseas should grasp this historical opportunity and try to play a role for the strategic purpose of achieving the national economic security and for. the worldwide economic development as well as for having a harmonious world.