Research On Government Guarantees Of The Risk Control In Bt Project

Even though the economic stimulus plan has been steady, China is still at the stage of fast development of public infrastructure construction. This closely relates to the mass demand of public service and products. It could be seen that the limited amount of revenue cannot completely meet mass demand, which put the government in a position of facing fiscal and social pressure. This poses an impact on both government’s reputation and national economy’s development. However, since the BT Mode, a mode of contractor paying for infrastructure construction first and then government repurchasing them, has been introduced in China, public infrastructure construction in China has developed considerably. It also plays a more increasingly important role in China’s economic and social development.The key to a successful BT Mode project is government’s regular repurchase in full amount, meaning, the risk of repurchase is the biggest risk for BT Mode project. This dissertation will use risk management theory to provide options for effectively, reasonably sharing and eliminating repurchase risk in BT project. Firstly, to identify the risk in BT Mode project by using quantitative method; and then, to establish risk evaluation index by using AHP (Analytic Hierarchy Process)-a comprehensive evaluation method combined quantitative and qualitative method; finally, to control the potential risk especially the biggest one. In order to control repurchase risk, a simple and effective way could be government revenue guarantee and land transfers guarantee. This dissertation uses cases to illustrate how to control repurchase risk in BT project. An advantage for doing so could be theory can relate to practice, so it provides a valuable reference for other projects.From studying on repurchase risk in BT Mode project, and corresponding measures made by repurchase party (government) and funding constructor, it could be known that government revenue guarantee and land transfers guarantee are relatively effective as well as widely accepted and recognized by BT Mode participants. As a method to risk sharing and benefit distribution for both parties, these two guarantees become one of the significant guarantees for healthy and sustainable development of BT public infrastructure project.