The Comprehensive Analysis And Management Of The Risks In The Freeway Project Company Under BOT Mode

BOT (Build-Operate-Transfer) is the project finance mode which the government and the project sponsors signed the chartered agreement to grant the concession, thereafter, the project sponsors are awarded the concession from the public sector to establish a project company to finance, design, construct, and operate a infrastructure facility stated in the concession contract. Due to the arrangement, the fees are usually raised by the project sponsors during the concession period, allowing the sponsors to reach a satisfactory internal rate of return for its investment. Generally speaking, such projects provide for the infrastructure to be transferred to the government at the end of the concession period. The BOT mode can control the investment scale of the project effectively, regulate the government acts and improve the management level of the free way. The BOT mode currently finds little application in the infrastructure projects in China, which still develops in its beginning stage. The freeway is a large scale project, with complex structures, long construction period and concession period. The maintenance cost of the freeway project is relatively low but with a high debt interests. Therefore, the risk is the key problem for the free way to finance with the help of the BOT mode.This study combined both the theories and practices, discussing the background, the purpose and meaning of the study and introducing the research status of the risk management both home and abroad at the beginning. Then, the definition and the management procedures of the BOT mode were introduced, and all kinds of risks for the construction of the freeway project under the BOT mode were analyzed. Takes the Huizhou Guanghe Freeway Ltd and its BOT mode project as example, all kinds of management methods in the construction process were introduced. The characteristics of the risk management and some concrete measures were summarized in the construction process of the freeway under the BOT mode, which may provides some references and guides for the application of the comprehensive risk management in similar projects in the future. This study also hopes to promote the application of the comprehensive risk management in the freeway projects under BOT mode.