Bot Projects Based On Risk-sharing Concession Period

BOT project concession period consists two parts: concession period limit and concession period length. Usually completion risk is distributed to project company, thus if completion risk exceeds the endurance of project company, the project will fail. Foreign studies show that different concession period limit can distribute different grade completion risk to government and project company, but there is no study showing what concession period limit should be selected for different projects. Usually market risk be distributed to government. Due to market change, government often faces heavy debt burden. Concession period length is the key factor ensuring the rights and interests between government and company, and no study shows how to ascertain concession period length when the distribution of market risk is taken into consideration.Based on the above questions, this paper mostly completes two tasks:1. This paper addresses what concession period limit should be selected preferentially for different projects. The conclusion can offer reference for government and project company, so that two sides can burden reasonable risk and make the project feasible.2. Under considering the distribution of market risk, this paper constructs a math model calculating concession period length. The model can adjust concession period length according to the market risk taken by project company. So the model can ensure the risk-return trade-off between government and project company, and ensure the rights and interests of two parties.The logic research and experience research method are used, and qualify and quantity method are also used. In the course, have gotten following conclusions:1 To the power plant, waterworks, sewage treatment plant, highway and bridge , Can choose single-limit or two-limit; To the tunnel and subway, the choice that should have priority in two-limit.2 Concession period length is relevant to the size of market risk distributed to project company.