Study On The Risk Management Of BOT Financing Mode In Power Industry

Power industry, as the typical representative of the basis of the energy industry, and the emphatic object to improve people’s livelihood project, has the characters of large-scale investment and long-term return on investment, and exists the problems of low operational efficiency, high-risk and low-level return on investment. The traditional financing mode with governmental investments as the principal source can not be filling with the development of power industry.BOT is an important financing mode for infrastructure construction projects, which is useful to relieve the lack of funds and improve the operational efficiency, correctly playing an important role in the modern infrastructure construction. And how to distinguishes and arranges the risks, how to reduce and distribute the risks is the key point for the BOT projects to reduce costs and increase revenue. So, the focus of this dissertation is the features of power industry. It analyzes various kinds of risks which the BOT model faced, gives some effective risks management strategies, and uses them in the power of practice.As the starting point for risk management theories, this dissertation combines the specific cases of power construction, special studies of the risk and the risk management of BOT model. Chapter one introduces the background, purpose and significance of this article. Chapter two elaborates on the risk identification theories. First, this chapter describes the risk characteristics of BOT projects; second, according to the forms and characteristics of BOT projects, this chapter studies the conceptions and forms of systematic and non-systematic risks in detail. Chapter three elaborates on the risk management theories; based on the risks identifications, this chapter explores the risk management strategies and principles, especially focused on the management of systematic and non-systematic risks. Chapter four combines three power project, applies the theories of project risk management, respectively analyzes and studies the three specific projects, and summarizes the reasons for their success or failure. Chapter five points out the main problems in power construction, and gives some measures or suggestions in order to offer some helpful advices on BOT risk management.