Risk Analysis And Countermeasure Research On Overseas BOOT Projects Of Chinese Enterprises

In recent years,with the continuous deepening of China’s reform and opening up and the acceleration of global economic integration,overseas energy industries have been developing rapidly under the grand strategy of "going global" and "One Belt and One Road".Among them,hydropower industry is the most prominent.Many enterprises have conducted overseas project exploration.Many enterprises are actively engaged in international project contracting.After years of exploration and accumulation of experience,their international competitiveness has also gradually increased.Combined with the local project investment environment,Chinese enterprises find another way to use BOOT model to invest in building hydropower stations overseas.Chinese enterprises do not have much experience in implementing overseas BOOT projects.The risks they face are more complicated than those of other projects.Moreover,the hydropower enterprises in our country lack the ability and experience of risk management in overseas BOOT projects.In addition,the objective environment and Policy restrictions are the main reasons for this phenomenon.Such as the initial budget of the project and the preparation of investment and financing,the project the interests of all investors,the local political fluctuations,exchange rates,interest rates and other economic fluctuations,the duration of the control,the cost control,the project location of the special geographical climate Conditions and other factors,will give the project in the implementation phase of various risks,eventually leading to project termination or failure.As our neighbor of our allies,Pakistan,the all-weather all-round strategic partnership has been established between the two countries,and has conducted in-depth and comprehensive cooperation in power engineering,communications engineering and transportation.At present,the electricity shortage in Pakistan’s power industry is huge,and the problems of transmission and distribution equipment aging have become constraints to its economic development.However,it also provides an opportunity for Chinese enterprises to enter the Pakistani electricity market.Under the framework of "One Belt and One Road" and "CMB Economic Corridor," China and Pakistan will deepen their cooperation in the field of energy and power.This article chooses Pakistan’s Karot Hydropower Project as a demonstration project of key cooperation between the two countries as an example.The selection of this project is not limited to one case.It is intended to explore the operability of our country’s enterprises in investing in the concrete implementation of the hydropower industry in Pakistan.This paper analyzes the hydropower investment environment and the BOOT operation mode in the electricity market in Pakistan,and analyzes the economic benefits and investment risks of the Karot project according to its own characteristics,and puts forward the risk coping strategies.To provide reference for the follow-up of China’s enterprises to further develop their international business,and to study and judge the political,economic,and industrial risks of the proposed investment country in advance.