Calculation And Application Of BOT Procurement Patterns’ Concession Period

BOT is a kind of infrastructure construction financing the procurement and projectmanagement mode, using of the foreign capital and private capital to build theinfrastructure of promising new pattern. This is a country of consortium or investors asthe sponsor of the project from the government of a country to obtain an infrastructureconcession, and then by its independent or combined with other parties to establish itemcompany, responsible for project financing, design, construction and operation. Theconcession period item company projects through the operation profit, and used theprofits to repay debt. In concessionary expire, the whole project by item company freeor with few nominal price transferred to the host government.As China’s accelerating urbanization, infrastructure construction moves forward,by attracting foreign investment and loans to international economic organizations andraising construction funds, including issuing construction bonds is becomingincreasingly widespread. This indirect way of using foreign and domestic private capitalto some extent eased Fund demand contradiction, but inevitably increased theGovernment’s debt burden. At present, China has entered the peak of debt, because ofurban infrastructure investment demand, characteristics of the long construction period,funds recovery slower, compared the financial means available under limitedcircumstances, the Government cannot directly to excessive inputs of urbaninfrastructure construction. Reform of China’s infrastructure investment subjectpluralism after the targeted, BOT models in various provinces and cities attractedconsiderable attention and a growing number of practical operation.In the BOT projectimplementation process, the most important is the privilege of the concession agreement,it is also the entire BOT projects based on.This article mainly has two functions, one is based on the BOT concession perioddecision model, Study on the construction period of BOT projects supply logistics modeselection, classic EOQ-JIT analysis model and its improved model for addingenvironmental cost factor on logistics cost of the solution process, Implementation tominimize logistics cost in construction period of BOT projects selected, Evaluated and decisionmodel of concession period added in logistics costs, as well as the added cost ofdepreciation charges and tax, to improve it, functions return special decision-makingmodel on concession period for solving more constraints and practices; two are caused by BOT concession period decision model involves many complex variables, formulas,data need to be processed at least20, more than30group even more, so, according toBOT model and its improved model based on a new formula for calculating softwaredesign is very necessary. Functions of the software can be calculated for single groupBOT privilege period related formula results, two can carry out data bulk import andexport operations, and the design of drawing program simple simulation BOT privilegeperiod decision-making model drawing.Using of VC++6.0development tools and GDIgraphics platform, involving the net present value, depreciation expenses related basictheory.