Evaluation And Control Of The Highway Project Risk Under BOT+EPC Mode

In the 18 th century, Adam Smith wrote in his famous book The Wealth of Nations, “The reform of transportation will be the most effective one in all kinds of reforms.” It has been proved by the history of Human beings that transportation is of vital importance to the economical and social development of a nation or an area. Among all transportation infrastructure facilities, the construction of highway has been one of the key factors to enlarge the civil demand as well as to promote the development of the domestic economy, which is of strategic significance to the industrial layout and economical development.Grounded on the theory of project financing and starting with the BOT+EPC project financing model, the article first defines the BOT+EPC project financing model, demonstrates its development and practical application into the highways, BOT+EPC domestic and foreign, and illustrates the standard procedures of BOT+EPC project financing in the construction of highways.Then the article expounds the evaluation and identification of risk, discusses the relative theories on its policy-making and management and thus exposes the whole process of the risk management of BOT+EPC project financing. Finally, the article presents, with examples, suggestions on the elusion and precaution of risk. In brief, the article analyses the BOT+EPC project financing model and risk management, applies the qualitative analyses and quantitative assessment to the case of a highway in our country, and, with the bases on BOT+EPC project financing model and the identification, evaluation and elusion of risk, figures out the proposals on how to elude the risks and construct quality highways in a BOT+EPC highway project, in order that the government’s infrastructure facility be put into immediate effect and the investors be rewarded reasonable investment income.