Legal Thinking On Utilizing BOT Style In China

In order to meet the needs of economical globalizition and the economical development of our nation, there are a series of reforms in the structure Of investment in China. The environment and style of utilizing foreign investment has newly changed, the diversification of investment structure is taking shape. Especially with the entrance to WTO, we faced much more challenges and opportunities in utilizing foreign capital. As a new investment style, BOT style may not only give us constructural fund, but also management skills and high efficiency. Therefore, all the country began to pay attention to it. But BOT style is a complicated systematic engineering which involve the interests of many parties. And carrying out BOT style is a new job in our country, the people have no idea about it. There are some distances between current legislation and law guarantee of BOT style. The article will discuss and research the law issues that exist in the process of utilizing BOT style in China.I .The outline of BOT styleBOT is called Build-Operate-Transfer for short, we often call it BOT style. Its characteristics are different from traditional international investment style. It's basic meaning is that government authorize investors concession in limited years through concession agreement, and permit them to build and operate definite public infrastructure, and the investors will freely transfer the item to the government before the expire time. As soon as BOT style appears, all the countries approve it and use widely.Utilizing BOT style is of benefit to the host country and the investors. It not only solve the contradiction between backward infrastructure and lack offunds, but also introduce advanced technology and administrative experience an raise the efficiency of the items.n. The present situation of utilizing BOT style in ChinaThe first estate that we financing from foreign countries is electric power. Shajiao B electric plant in Shenzhen is the first BOT item that is in good operation in China, and it complete transfer successfully. With the starting of BOT experimental unit, many local governments attach importance to it universally. BOT style gradually extend to many fields such as , improve traffic conditions, transform old city and environment protect.But there are a lot of legal problems during the utilizing of BOT style. There is no special space for BOT style, which make the practiced operation of BOT style without law to abide by, moreover lack of policy guide and the assurance of law. In detail, there exist the obstruction of law in varying degree, such as, government guarantee, the right of stock, control foreign currency, the enrollment and financing of project corporation, the investing scope of foreign investment, etc.In accordance with the legal problems above-mentioned, we should use the experience and lesson of foreign BOT style for reference, in order to look for the plan of solving this legal problem.The practice of BOT style abroadFrom the practice overseas, there are two kinds: one is that the countries whose economic and jural condition is very mature. There are regular operation of BOT style and transparent policy and more success in such country. Such as, Australian, English and so on. The other one is developing countries where the government must gradually improve its laws andregulations and related conditions. It exist irregular management and result in many differences in them.To summarize the experience of utilizing BOT style abroad, it is important that between government and investors should forge long-time cooperate ties, and this is the important guarantee for a successful project. Meanwhile, owing to many parties involved, it is also important that how to resolve the interests confliction of the parties, which need a reasonable mechanism allocating risk.Furthermore, keeping a transparent, stable, authoritative legal system can regulate effectively the operation of BOT style and assure market competition in good order, which is the foundation of a successful BOT styl...