China's Urban Infrastructure Bot Project Financing, Risk Control And Policy Recommendations

As a new-type project financing method, BOT financing approach gets relatively rapid development in the development country in recent years. BOT approach is mostly applied to the infrastructure construction in the cities. Now it has been brought into the field of the infrastructure construction by the Chinese government because it can solve the problem of the money shortage and the management inefficiently. BOT financing project whose environment change and development constantly is characteristic of large scale of investment, long life circle, many participants. So risk controlling is a key problem in BOT financing project. Successful risk controlling is the assurance that goal of BOT financing project is realized. Therefore, it is necessary to study risks controlling in practicing BOT scheme.This paper probes into risk identification, risk measurement and risk avoidance in the BOT project with the help of methods, such as risk management, Technical Economics, Finance Management and so on. The characteristics of BOT approach are first discussed. Furthermore, based on the existing research results in BOT project risks, the potential risks in the BOT project are summarized comprehensively. A new method to measure risks is proposed to deal with the intricate risks in the BOT project. A very applicable solution to avoid risks is also put forward. The methods presented in the paper make it easy to control and manage the BOT project risks. In the last, according to the existing problems of China's BOT projects, the author puts forward to some constructive and practical advices for the governments at all levels.