Overseas EPC Project Financing Risk Prevention

With the implementation of the One Belt And One Road strategy,we find that the traditional design-tendering and construction contract model is difficult to adapt to the current international market.For technically complex large-scale project,because the owners and management level and economic strength of the countries is limited,not only need to manage technology,more the contractor can provide financing:a new mode of investment and financing construction such as EPC + F,the financing of the EPC projects to build model will be the trend of the international project contracting market in the future.However,our Chinese enterprises have not paid much attention to the risk management,and the application of methods and tools in risk management is still lacking.Therefore,EPC financing project risk prevention is the direction of this study.Based on the theory of literature at home and abroad,with five practice of the author himself involved in case in risk identification,assessment and analysis,find out the best in overseas financing construction project risk management channels and ways.In this paper,the first choice of the overseas EPC financing construction project is to select the market reelection project.A better enterprise risk control on the market,especially the niche of regional market must be very important,the project itself depends on the planning and design,and the choice of the regional market is depends on research and analysis.Some enterprise on its own strength and advantage,can being still to invest to build in some unstable regional markets,but the project host country political risk factors of the market is always one of the important indicators of overseas EPC project appraisal.Second,choose a good management team.It is well known that the planning,operation and implementation of the project are done by the team.A good management team will be able to implement a project that is insufficiently flawed to minimize risk and loss.A bad team can fail a good project management.In the management of overseas EPC project financing,only a good management team on the management of risk and using the theory of risk and risk management methods and tools to identify,evaluate,and control risk.