Research On The Consession Pricing In Infrastructure Bot Project

With China’s rapid economic development, the demand for infrastructure is increasing year by year. If the infrastructure is built by the government entirely, it will cause great pressure to the limited government finance. If the government can’t provide infrastructure effectively, it will cause the contradiction between supply and demand of infrastructure, thus affecting the sustained development of economy. Since BOT was introduced into the field of infrastructure construction, a series of problems were solved fruitful, not only can relieve the government’s financial pressure, but also guarantee the supply of infrastructure.The infrastructure BOT project concession pricing and adjustment, affect the project main body (government and the project company) corn interests. To design an effective and reasonable franchise formulation and adjustment mechanism, is one of the key problems to be solved in the concession agreement, if the design is not good, it may cause the loss of the project party interests, and even affect the smooth implementation of the project.Based on analyzing the infrastructure BOT project document literatures, first of all, the theory related to the infrastructure, BOT mode and Concession Pricing was summarized in this paper, and the research object of the thesis was confirmed. Secondly, quantitative analysis the concession price under the fixed concession and the flexible concession period through mathematical modeling. The fixed concession was divided into "model one" and "model two". In the "model one", according to the different attitudes towards risk of the item company, the item company is divided into risk seeking, risk neutral and risk aversion in three types, and analyzes how to make concession price for each type of risk of the item company. In addition, analysis of the concession pricing under the condition of fixed concession period by introduced the method of game theory. Suppose the government aim to maximize the social welfare, the expected profit to item company as the constraint conditions. Then the mathematical model of concession price was structured. Finally, the adjustment should be based on the principles of concession price, including the principle of fairness, the principle of balance of interests, motivation principles of efficiency and dynamic adjustment; the period and amplitude adjustment of price concession; concession price adjustment model is constructed.To research on the concession pricing of the infrastructure BOT project, the main purpose is to parties to participate in the project’s benefits can be expected to achieve a balanced, realize the effective supply of infrastructure, to promote the economic development.