Overseas "TURNKEY Projects Finance" Practice Exploration

Since China successfully joined the WTO, it has merged into the world's economic tide wholly. More and more Chinese enterprises have developed from"take in"to"go out"and have made an active involvement of globe competitions. In late years, the sales of Overseas Turnkey Projects in Chinese corporations rose sharply, and their emphases have shifted from strategically marketing occupation to pay attention to the gain, which has become an important factor to the whole company's profit and loss. Overseas Turnkey Projects have the character of large scale, tremendous risk, and the contract amount is often huge, vary from ten millions to billions US Dollars. According to the incomplete statistics, many these Turnkey Projects are lost now due to lack of experience and the need of TK Project financial specialist in overseas is urgent.This paper lists different conditions with which overseas TK Project Finance managers meet in their practices, and analyses systemically their job's features, contents, ways and key points which are related to the actual work. The first part introduces the background knowledge of TK Projects'concept, TK contracts'system, important ideas and tactics. The second part discusses vertically in time order about the different job responsibilities and effects of TK Project Finance managers separately in the Project's bidding period and implementing period. These include the Project's feasibility analysis (general estimate), budget, accounting, clearing and appraisal etc. The third part introduces laterally the management work emphases of TK Project Finance managers on different professions, such as fund management, LG & LC, Project's finance and loan sale, procurement management, subcontract management and tax management etc. The fourth part centers on the project's cost management and risk management, which are closely related to finance in the whole project's management field. This paper finally concludes that the essence of TK Project Finance managers'work is that they should check and control the TK Project from financial angles through the whole procedure from end to end. And the paper also ponders on the key problem that arises in the TK Project, about the powers granted to TK Project Finance managers and the responsibilities they divide with the traditional professional departments. In the author's opinion, it's the best way to carry out Project-Guiding management way to achieve the best value of the TK Projects.