| As one of the mode of project, BOT is widely used more and more. Because of the features of the infrastructure and the complication of BOT mode, the bigger risk exists for the investors. It is vital for the investor of BOT project to identify, control those risks and abstain the success. The author of this thesis analyses the main risks possibly existed in BOT project in the field of water treatment and the precautions which should be taken from the point of the investors.Firstly, the brief introduction of the case study of ChangTu Sino-French water supple Co. ltd. lay out the problems. The project which was taken a fancy originally became involved in trouble at present. Why does the profit of the enterprise drop off while the amount of water supply makes a gradual rise each year? Why take a reform to original water unit to heighten the unit power consumption intentionally? Why is present level powerless after the new standard of the inspection of water quality emerges? These entire key can be found in this thesis. The present situation of ChangTu Sino-French water supple Co.ltd.is an epitome of the problems which BOT project encounter in china at present. Some projects, such as Shanghai Dachang Water Plant project which UK Thames Water affair invested, Changchun Wastewater Treatment Plant project of China Water Company Ltd(CWC). One project of shenyang water plant, came to an end by finishing fulfilling, the castanets because of a various of reasons.As a base of the construction of government's municipal administration, water industry own special features some futures, such as guided price by government, supervised by the state, concerned by the citizens, not be salt abroad decide that the value of water industry is products concerning with the state plan and cuteness life can't be presented by the market mechanism, and it contradicts the idea that investors are anxious to get their cost back and make profits. The government at all levels enlarge the opening of basic fouillties of financial administration the investors' investigating condition. It is promised to purchase the lowest amount if supplying water at the earlier stage of attracting, commercial and capitals or promised directly to repay in a certain way in order to improve environment by attracting foreign capitals but it became a heavy economic burden for local government after a few year's running, it led to be behind in payment and even a failure in cooperation with the investors.It is certainly concerned with the document No.43 issued by General Office of State Council in September 2002. The document, in full, Circular of the General Office of the State Council on Issues Related to the Proper Disposal of Existing Projects with Guaranteed Fixed Returns for Foreign Investors, holds that the unequal contract signed under specific condition have already soused serious losses for Chinese local government and the risk is shifted to the Central Government. The document NO.43 pointed out directly the illegality of the fixed repay: Basic principles for the disposal of the existing projects with fixed returns "The practice of guaranteeing fixed returns for foreign investors does not tally with the principle of sharing interests and risks between Chinese investors and foreign investors,and violates the provisions of relevant laws and regulations on Chinese and foreign equity joint venture and Chinese and foreign contractual cooperative enterprise". The ways of amendment, purchase, conversion and termination may be adopted in their disposal according to the specific conditions of the project. From the point of the risk management of project management, it is mainly causal by having no detailed risk management plan, having inadequate risk judgement, having evading attitude whether risk turns up ,so we have to under take the risk by ourselves.In the case of having limited financing capitals of all levels of the government, BOT is still on ideal financing made of basical facilities . As china joins WTO and reforms basical facilities system BOT project will be developed quickly. In1994, Chinese government started to research BOT made. in August 1995, Several Issues Concerning the Examination, Approval and Administration of Experimental Foreign-invested Concession Projects Circular, issued by State Planning Commissions, Electricity Ministry and Transportation Ministry, provides the regulate and the basis for BOT Mode operated at home. At the same time State Planning Commissions chose some projects as experimental units, such as GuangXi Laibin Electric Power Plant, Chengdu No.6 Water Plant, ChangSha Electric Power Plant and Guangdong DianBai Express Way and so on. This indicates that Chinese BOT project has been to the standarded operating developmental period. In 21st century, China economy develops quickly. China joins WTO officially, which makes the head of investing in China increased greatly. In order to create a better investing environment and offer high level public series meanwhile, basical facilities will be constrained widely and in longer scope firstly taking water supply and wastewater treatment as an example. The quicker process of city construction in China, the rise of people's life level and the implementation of the policy of water resource such as water in South-to-North water diversion, speeds up the development of city water supply industry. Environmental pollution attracts the attention of whole society widely and water resource is inadequate day by day, which made the construction scope of polluted water treatment facilities in city extended rapidly. with the further development of reformation of economic system in China, state gradually reduce the input of state-owed capital in basical facilities field, and realize multiple investing, lead market-competition mechanism improve operating efficiency of basical facilities, lower the social Service price. This makes all kinds of capitals, not only financing capitals, have many chances to put into the basical facilities. From the point of the financing capitals, financing expenditure growth rate is 3 times than GDP growth rate. after 5 years of active financing policy feature, it is limited that the government control the space of economy by this way. It is necessary trend to raise basical facilities capitals by different channels, including BOT mode .Through interpreting the advantages of BOT project, the risk in application, the features of city water supply, and the risk management of BOT project is the key point. The present risk of ChangTu Sino French water supply Co. Ltd can be solved well through detailed explanation of risk identification, risk analysis, risk handle and risk supervision, the eleven risk categories of decontrolling risks and eight categories of controlling risks. The risk which BOT project encounters in water treatment and even solving plan are discussed here in full in the way of theory-practise, combined with concerning standard of project risk management in A Guide to the Project Management Body of Knowledge (PMBOK? Guide) and Chinese Project Management Body of Knowledge. Through the detailed explanation of the risk faced by ChangTu Sino French water supple Co. ltd and handle strategies, offer a warn to BOT project in present and past water treatment industries to avoid risks, handle risks and control risks, promote reasonably the sound development of it. |
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