Study On Risk Management Of Domestic-invested BOT Highway Project

Along with the rapid development of economics and reformation, Infrastructure especially highway construction can't meet the needs of economics development, national finance fails to fill the requirement of huge gap. BOT ,as a method of financing, which is used in the construction of infrastructure, has been used in port,power plant,sewage treatment,highway,railway successfully from the beginning of 1990s .With the development of economics, private capital has accumulated and has the requirement to invest in infrastructure. More and more state-owned enterprises, private enterprises, individual investment begins to take part in infrastructure. In this paper, we will take the highway project as a starting point to make a discussion.Risk management is very important for the success of projects, and is paid huge attention in BOT highway project. In this essay ,the origin,definition,development and the various stakeholders are discussed ,and the framework of BOT is set. On this basis, the theory and process of risk management is introduced, the theory of risk management and domestic-funded BOT highway project are combined, which leads to the research of risk management on this kind of project.The character of domestic-funded BOT highway project is discussed. WBS, an important tool in project management, is combined with RBS to recognize risk factors, from the vertical and horizontal perception, the complex project and risk factors is decomposed in order to build up a WBS-RBS matrix to recognize risk factors. This kind of method ensures the comprehensiveness and reliability of risk identification, and circumvents defects that the risk factors are recognized subjectively.On the basis of risk recognition, the risk assessment is further discussed. First, the introduction of several methods, used in risk assessment are given, and then discus the BP neural network. The network architecture and algorithms is expounded, a risk evaluation index system is built, and BP neural network is used to assess the risk on the basis of the index system. Qualitative analysis and quantitative analysis are combined to further ensure the accuracy and scientific of risk assessment.Risk responses are introduced, and basis on the highway project, the measures to each risk factors existed in the project are listed comprehensively and systematically to ensure that the project will move on smoothly.