A Research About Risk Management On Metro BTO Project In Company A

Infrastructure construction projects in China have been faced with severe fund shortage. Since 1980s, a new way for project financing called BOT has been introduced into China and widely applied in various sectors and fields. However, despite BOT's advantage and great prospect in China, BOT mode is also characterized by huge investment amount, long construction cycle, complex structure, multiple forms of uncertainty and risks, etc. All these may lead to a series of problems in the execution of BOT projects, such as legal issues, risk problems, operational and technical issues, and problems regarding economic benefits. These problems may have a great impact on the results of BOT projects. Therefore, the key to successful execution of BOT projects is the optimization of project management.In view of the above situation, this article has conducted comprehensive researches concerning flow management of BOT projects. First part of the article expatiates on the concept, characteristics and classification of BOT projects, as well as the background situation both at home and abroad, focusing on the difference between BOT projects and general construction projects. This part not only lays a foundation for the further research on risk management of BOT projects, but introduces the current situation of the research in this field. The second and third parts of the article introduce the basic information about A Company and deal with a series of problems occurring in the execution of BOT projects, including risk identification issue. Based on the foregoing research and analysis, the fourth part of this article further probes into the problems and risks, as well as the optimization of flow management of BOT projects, laying the theoretical foundation for the fifth part of this article, which is the solution and conclusion part, revealing how to improve and optimize the BOT mode. This article points out that, to control and avoid the risks in BOT projects, each party concerned must share a reasonable part of the risks. The article also discusses the prerequisites and actual situation of the risk pooling, as well as the measures to ensure that risk-pooling is executed. The article emphatically points out that measures concerning three different levels (macroscopic level, mesoscopic level and microscopic level) must be taken to ensure credibility of government, related industries and individuals, so as to secure the benefits of risk pooling, as well as improvement and optimization of BOT construction mode. Based on theoretical research, this article introduces case studies regarding BOT projects of Wu Tongshan Tunnel (connecting Shenzhen and Yantian) and 2008 Olympic venues in Beijing. In this way, the article tries to identify risks and types of the risks that need to be controlled during the execution of BOT projects, and also puts forward corresponding optimization methods to cope with the situation. The purpose of the case studies is to present more evidently the research ideas and approaches for this article.