Research On Core Legal Issues In BOT Investment Model

BOT is a new form of international investment and financing which has beenadopted by many national economies in recent years. BOT is highly valuable indeveloping countries including China. Since the mid-1980s, our country has begun toprobe various BOT investment methods to build infrastructures. Utilizing BOTinvestments, many projects have yielded successful experiments in China. Ourcountry has accumulated certain experience through various BOT projects, and issuedsome management rules about BOT; however our countries use of BOT methods isstill somewhat limited. Meanwhile, aspects of the soft environment, especially thelegal environment in the demanding of BOT investment projects, are still insufficient.And there are no set legal statutes to adjust BOT investment projects at present in ourcountry. The little regulation that does exist in our legal system is not only flawed, butcontradictory. This has led to widespread confusion among members of China’s legalsystem. So we must perfect the soft environment which is favorable to BOT operationof investment projects as soon as possible, and attract foreign capital to investinfrastructure construction by way of BOT, especially the infrastructure constructionof the western region of China.First of all a general introduction to BOT, then goes on to enumerate severallegal issues concerning BOT system analysis, including BOT investment means, thelegal nature of the BOT concession agreement, and government guarantees in theapplication of BOT projects, all problems which have significant repercussions for theChinese economy. This paper also examines contrasting opinions on the merits ofBOT investment projects. At last, discussing present Chinese regulations concerningBOT, the author points out the legal obstacles of adopting BOT in China, and poseshis own suggestions about legislation of BOT.