AbstractThe build-operate-transfer (BOT) contractual arrangement has been actively promoted by the Chinese Government and is rapidly becoming one of the prevailing models for basic infrastructure development in China.
Under a BOT arrangement, private investors are responsible for financing, designing, building, operating and managing a project for a number of years after its completion; and recoup its construction costs and make a profit out of the proceeds coming from the operation and commercial exploitation of the project. At the end of the concession period, the project is transferred to the government.
International investors can not afford to ignore the scale of the market in China for infrastructure projects. Their strong will to invest in this market, combined with the Chinese Government’s determination to attract the necessary funding, will ensure that ways are found to make BOT work. Despite the tremendous opportunities, undertaking infrastructure business in China involves many risks and problems, which are mainly caused by China’s embryonic legal structure and immature market economy. It is therefore important to analyse the critical success factors (CSFs) associated with BOT projects in China.
This paper presents an analysis of CSFs related to BOT projects in China. A survey, aiming to iron out the CSFs which may affect the successful implementation of BOT in China, was conducted to seek the views of experienced professionals and government officials. Based on the findings of the survey and case studies, a predictive model of CSFs for BOT projects implementation in China is proposed.
Some other key issues related to BOT projects in China, such as current regulations and approval procedures, government initiatives and guarantees, and competitive tendering system, are also discussed.
|Date of Award||13 Jun 2000|
|Supervisor||Tsang Sing CHAN (Supervisor) & Kong Wing Clement CHOW (Co-supervisor)|