The Case Study On Financing Risk Management Of R River BOT Project

With the implementation of the "One Belt One Road" initiative,the cooperative development of Beijing-Tianj in-Hebei,and the development of the Yangtze River Economic Belt,public demand for infrastructure and utilities is increasing,and funding gaps in project construction and operations management are also increasing.BOT project financing is a way for the government to introduce social capital in infrastructure construction.It is of great significance to deepening the reform of China's investment and financing system and accelerating the pace of infrastructure construction.However,due to the large amount of investment and long construction period,BOT projects involve a large number of participants such as project companies,creditors,suppliers,governments,investors,and construction companies,and the financing structure is quite complex,making the risk exist throughout the entire process.As a result,social capital is now particularly cautious when it comes to infrastructure that is built on a BOT model.How can better attract social capital?This requires a detailed analysis of the uncertainties existing in the BOT project,so that it can be fair and reasonable to share and effectively deal with and prevent risks.The focus of BOT project is project financing,and the key factors for the success of project financing:whether risk identification of project is extensive and meticulous,whether risk sharing scheme is scientific and fair,and whether risk prevention measures are effective and reasonable.This article takes BOT project financing theory as a guide and starts from the practical application of BOT project and its corresponding project financing model,analyzes the problems and risks encountered in the use of BOT financing models in China,and discusses corresponding countermeasures and preventive measures.Then takes the R river BOT project as an example,having now been reviewed by the Ministry of Finance for its value and affordability and entered the national repository,analyzes in detail the reasons why fails to bid for the social capital and causes the suspension of the project,and finds out that the project should be improved in terms of project financing risk management.This article will not only refine the risk of R river BOT project financing,but also conduct detailed research and analysis from the aspects of risk identification,risk assessment,risk sharing and risk prevention,respectively.Through more in-depth research and analysis on the whole process of risk management of R river BOT project financing,we have obtained some inspirations for the risk management of China's BOT project financing:the risk objective of BOT projects financing should be fine and comprehensive;the risk sharing of BOT projects financing should be fair and scientific;innovate financing channels of BOT project;optimize intermediary consulting agency for BOT project risk management and strengthen the training of professional technicians.This article aims to provide some reference and guidance for social capital and the government to raise awareness of risk prevention and identification.It also helps to promote and improve risk management system of China's BOT project.Only by mobilizing and inspiring the enthusiasm and vitality of social capital,we can better attract the participation of social capital,and ultimately accelerate the pace of China's infrastructure construction and improve the overall quality of China's socialist economic system.