Research On Decision-making Method Of Flexible Concession Period For BOT Project Of YC Expressway

Since the reform and opening up,China’s economy has developed rapidly.Large-scale infrastructure construction requires the government to invest huge amounts of money to support it.However,the government does not have enough funds to meet the needs of all projects,and there is a serious imbalance between supply and demand.In such an environment,the application of China’s highway BOT mode came into being.Among them,the concession period is one of the important factors for the government to sign a franchise agreement with the project company.The scientific and reasonable concession period is a major guarantee for the successful operation of the BOT project.The time for introducing the BOT model in China is still very short.At present,projects that are put into operation generally use a fixed concession period.However,the reality is very variable,and the fixed time of the concession period cannot be effectively adjusted according to the changes.Therefore,the number of failed cases is numerous.In order to solve the inherent limitations of the fixed concession period,a flexible concession period decision mode was introduced.Based on the realistic background of the BOT model,this paper takes the highway BOT project as the starting point and studies its applicability in the highway BOT project by establishing an elastic concession application system.Taking the BOT project of YC Expressway as an example,the actual application is provided,which provides a reference for the construction of expressway BOT projects in China.This paper first expounds the meaning,characteristics,participants and operation mode of BOT project financing,and comprehensively uses literature research method,case analysis method and comparative analysis method to conduct research based on the following aspects:First,introduce the traditional concession decision-making method.And identify the problems in the application process of the fixed concession decision method from the aspects of accuracy,risk and cost.Then introduce the flexible concession period to improve the concession period decision,and combine the decision characteristics of the flexible concession period to discuss its applicability to the highway BOT project in China.The net present value model is constructed based on Monte Carlo simulation to further illustrate its application process.Finally,following the idea of Monte Carlo simulation and flexible concession period,according to the application process,the application analysis of YC expressway BOT project data is carried out,and the specific operation of YC highway is analyzed from the aspects of cost function and income function to help the elastic characteristic concession period.Smooth application in the YC Expressway.Through the application of the flexible concession decision-making method in the BOT project of YC Expressway,it is found that there will be many problems,such as the need for the support of a large amount of information materials,the difficulty in obtaining the unified calculation procedures,the imperfect project tracking audit system,etc.Corresponding improvement measures.