Research On Financial Evaluation Of BOT Project Feasibility

Infrastructure construction which needs a great deal of capital plays a very important part in the country's economic development, but it has the characteristics of large investment, long term construction period and high risk, based on the limit of national or local government's finance, it hampers the economic development to some extent. At present, BOT provides an efficient way to solve the above problems as a financing mode by which foreign capital or private capital participate in the infrastructure construction and paly its role in the country's course of infrastructure construction with its special strengths. However, the BOT projects devolved successfully are not many at the course of its application, this is mainly because many BOT projects are not have sufficient financial evaluation at the previous feasibility study, and implement project unreasonable under the condition of dissatisfy the interests demand of each stakeholder, which leads to many problems later and project failure finally. Therefore, the research on financial evaluation of BOT projects feasibility has important theory and real meaning for the successful operation of BOT projects.The paper is based on the analysis of the interests' attention point of main stakeholders of BOT projects, combining the characteristic of BOT projects, attempt to balance their interests of the host government, the shareholder, project company, the constructor and the operator, set up a financial evaluation indexes system to satisfy with all stakeholders, providing a solution for BOT projects financial evaluation.This paper is divided into six parts. The first part analyzes the important role of BOT in infrastructure projects in China, on the basis it puts forward the importance of the financial evaluation of BOT projects, and states the study plan, study content and innovations. The second part concludes the related theories of financial evaluation of BOT projects, and analyzes the research status of domestic and overseas and the deficiency of present research. The third part analyzes the right, responsibility and interests' attention point of the five main stakeholders in detail, and puts forward the risks of each stakeholder and interests' conflict. The forth part based on the concerned problem of each stakeholders, the paper establishes a set of financial evaluation index system from the different angle of the the government, the shareholder, project company, the constructor and the operator and considering how equilibrate the interests of five related sides, and explains the selection of the related data, finally discusses the adjustment of financial evaluation conclusion. The fifth part, the paper makes the instance analysis to the third bridge of Weihe in Xianyang project according to financial evaluation index system, and demonstrates the feasibility and effectiveness of this system. The last part of this paper gives a summary of the research conclusions and problems needed futher research.