First, the connotation of BOT international investment and financing mode

BOT (Build-Operate-Transfer)

Build-Operate-Transfer

It refers to a way of infrastructure construction and a way for private institutions to participate in infrastructure development and operation.

BOT structure is especially suitable for projects that provide social products or services, such as transportation or energy projects.

(B) the characteristics of BOT

1. Particularity of subject

Its legal subject is the competent department of the host government on the one hand, and foreign private investors on the other.

2. This is very risky.

From negotiation with the host government, feasibility study to the end of the business cycle, the time span often reaches several years, decades or even longer, so there are inevitably many risks, such as policy changes, changes in trade and financial markets and so on.

commercial risk

Political risk

3. hand over the authorization to the government after the expiration.

After the franchise of BOT project expires, the facilities will be handed over to the government free of charge.

Transfers and transfers are generally not allowed.

4. The government is one of the key roles for the success of the project.

The implementation of BOT project is a very complicated task and process, which involves many key stakeholders and needs good coordination and cooperation among them. For example: investors, governments, shareholders, contractors, lenders, users of project products, insurance companies, etc.

5. The investment scale is large and the operation cycle is long.

BOT projects are generally syndicated loans composed of a dozen or dozens of banks or financial institutions in many countries, and then organized and implemented by one or several contractors. From negotiation with the host government, feasibility study to the end of the business cycle, the time span often reaches several years, decades or even longer.

6. This project is very difficult

Each BOT project has its own characteristics, and there is generally no precedent to follow. Every project is a new subject and must be studied from scratch.

7. Demands the full cooperation of all parties.

The scale of BOT project determines the large number of participants, which requires all participants to participate in risk sharing and management.

Only when all parties involved in BOT project work together can we ensure the smooth implementation and timely completion of the project.

8.BOT projects generally cannot directly earn foreign exchange, but most developing countries implement foreign exchange control to varying degrees. Once the balance of payments of the host country deteriorates, strengthening foreign exchange control will seriously affect the capital flow and repayment ability of investors.

Second, the BOT project operation

BOT projects generally have four steps:

Step one:

The project sponsor establishes a special project company, and the special company reaches a project concession agreement with the host government or relevant government departments.

Step two:

The project company signs a construction contract with the construction contractor, and the insurance company of the builder and equipment supplier provides the guarantee. Professional companies sign project operation agreements with project operation contractors.

Step 3:

The project company signs a loan agreement with a commercial bank or a buyer's credit agreement with an export credit bank. The export credit bank provides political risk guarantee for commercial banks, while the lender is guaranteed by the assets of the project itself. The assets that the project itself can guarantee include: sales revenue, insurance, franchise agreement and other project agreements.

Step 4:

After entering the operation stage, the project company transfers the project income (for example, the sales income obtained according to the sales contract and the tolls of roads, tunnels and bridges, etc.). ) to the guarantee trust. The guarantee trust will use this income to repay the bank loan.

Third, the effect of BOT project financing.

(A) the positive effects of BOT project financing

L, from the government's point of view, BOT can reduce the financial burden, and use the funds saved by infrastructure to other government projects, so that things can be done better in the case of insufficient government resources.

2. From the contractor's point of view, during the downturn of the construction market, the interest of government banks and consortia can be stimulated by BOT to create investment opportunities for projects, thus alleviating the problem of insufficient sources of contracting tasks.

3.BOT project provides good investment opportunities for banks, financial institutions and private consortia.

Infrastructure projects have a large investment and a long payback period, and their investment intensity exceeds the ability or willingness of a single bank, financial institution or private consortium.

By adopting BOT, these financial institutions and private consortia can concentrate their funds on infrastructure projects in the form of shares or loans, and the investment returns are often considerable.

(B) the negative effects of BOT project financing

L, BOT investment mode makes the government in a dilemma:

If the state wants to hold shares, it needs to invest a lot of money, and there are too many state shares, so non-state-owned investors lose interest; In order to mobilize the enthusiasm of the private sector, the state does not hold shares, and losing the controlling interest in BOT projects will lead to private monopoly and other behaviors.

2. The private sector pursues profit targets, taking the realization of economic efficiency as the principle; However, infrastructure projects often have the requirement to achieve the goal of fairness, and these two aspects are contradictory.

3.BOT involves many and complex economic entities, and it is quite difficult to coordinate the interests of multiple economic entities, and the participation of the government as an economic entity rather than an arbitrator increases the difficulty of coordination.

4. From the government's point of view, due to the constraints of BOT project authorization agreement and relevant laws and regulations, the flexibility of response is poor.

5. For any BOT project, the investment amount is quite large and the relative authorization period is relatively long. For investors, the payback period is also long and the investment risk is high, which constitutes a disadvantage for investors.

6. Foreign businessmen often proceed from their own interests, and put forward plans with as much profit as possible and as little investment risk as possible, trying to make our government bear many risks that should be borne by investors, thus resulting in a situation that many projects are proposed for negotiation, but few are successfully negotiated and put into practice.

Fourthly, the historical evolution of BOT.

BOT mode has actually been used for centuries. Infrastructure and public projects are highly capital-intensive projects, which are usually monopolized by the government. As early as Europe 17 and 18 centuries, private investment appeared in the construction of some canals and bridges.

/kloc-in the 0 th and 7 th centuries, the British government allowed private construction of lighthouses. With the approval of the government, private individuals rent the land needed to build the lighthouse from the government, manage the lighthouse during the concession period, and collect tolls from passing ships. After the franchise expires, the government will take back the lighthouse and hand it over to the government-owned pilot association for management, and continue to collect fees. By 1820, 34 of the 46 lighthouses were built by private investment. It can be seen that at that time, this BOT investment method was much higher than the administrative department in efficiency.

In the European countries in the late18th century and the late19th century, the government made extensive use of the power of private institutions to invest, develop and operate public infrastructure such as roads, railways and canals. Especially in the construction and operation of water supply facilities in European cities, private institutions played an important role, and the water supply in London and Paris was undertaken by private companies.

After the two world wars, infrastructure construction was mainly undertaken by government agencies, which brought a heavy burden to the government, especially those developing countries that lacked funds, and it was even more difficult to meet the funds needed for infrastructure construction.

From the late 1970s to the early 1980s, the world economic situation changed gradually. Due to the needs of economic development, BOT, as an investment method, officially entered the economic stage.

1984, the then Turkish Prime Minister Auzard first proposed the word BOT, intending to build a power plant by BOT.

British-French Cross-Harbour Tunnel, Malaysian North-South expressway, Australian Sydney Bay Tunnel, etc.

4. Alleviate the shortage of funds;

5. Improve the degree of marketization;

6. Improve management level and operational efficiency;

7. Promote the development of the capital market.

Second, BOT has become a way for China to utilize foreign capital.

BOT is different from the traditional "foreign capital" enterprise investment.

First project

1In May 1995, Guangdong Laibin B Power Plant was approved by the State Planning Commission, and the first BOT financing project in China was officially signed. The project was funded in May 1997 and was completed and put into operation in the last century.

The second project

From1995165438+10, Shanghai Water Treatment Plant.

Since June 1995 1 1, the company has started to raise US$ 54 million in syndicated loans for project construction.

The third project

It is a Dingqu thermal power plant near Baoding City, Hebei Province, with a total investment of165438+400 million US dollars.

The fourth project is the Shenzhen power station project, which was undertaken by Asia Power Company.

The fifth project is the second phase of Guangzhou Light Rail.

The sixth project is the Wuhan Urban Railway Project.

In 1996 and 1997, the State Planning Commission approved several large BOT projects to attract foreign investment.

The tenth five-year plan period-the eleventh five-year plan period.

China's urban infrastructure construction needs to invest about 1 trillion yuan, of which government investment accounts for about 200-300 billion yuan, and 700-800 billion yuan needs to be solved through loans, foreign capital utilization and social investment.

In this case, financing through BOT has attracted the attention of relevant government departments and operators.

Thirdly, China enterprises carry out BOT projects overseas.

(A) "going out" strategy and overseas BOT development

2000-"going out" strategy

BOT, as a major capital contracting method in the international project contracting market, must be explored and practiced by China Company.

BOT project can drive more domestic units to participate in the international market competition and promote the better implementation of the national "going out" strategy.

(B) the role of overseas BOT in promoting China enterprises

1. This project can promote China company to improve its ability and personnel quality, and promote China company to expand and upgrade its scale, thus forming a rapid development situation.

2. It is conducive to improving the comprehensive management level of enterprises, especially the capital operation ability, and cultivating truly internationally competitive multinational enterprises.

(C) China Company's preconditions for developing BOT projects in the future

1. At present, domestic banks cannot accept project contracts as financing guarantees, and loans need company guarantees, which is far from the international practice of generally accepting BOT contracts as project financing guarantees.

2. China's capital market operation ability is relatively weak.

The capital market has strict requirements and procedures for identifying, evaluating and sharing investment risks. China's ability to identify, evaluate and share investment risks is insufficient.

3. The management system of China Company also hindered China Company.

When encountering BOT projects, the main consideration is objective difficulties, with obvious fear of difficulties and equal, dependent and important ideas.

This problem can only be solved with the gradual deepening of the reform of the management system of state-owned enterprises.

4. Companies with mature financing channels and sales channels operate.

Not every BOT project undertaken by a big international company can be successful. International big companies follow BOT projects, and only three or four projects can succeed. BOT projects involve a wide range and need the cooperation of all parties. Organizers, funders, builders and equipment suppliers of BOT projects need the cooperation of all parties.

5. Targeted selection of countries, industries and projects of BOT projects.

When selecting the host country of the project, it is necessary to consider the economic and diplomatic relations between the country and China, preferably a country with geographical advantages with China. In addition, it should be noted that the selected project type should adapt to its own advantages.

6. Purposefully cultivate and reserve the talents needed to implement BOT projects.

BOT project is the highest form of contracting project, which requires very high project managers. It needs the cooperation of Qi Xin, who is proficient in all aspects and has comprehensive quality, to ensure the success of the project.

BOT projects need business talents, management talents and technical talents. They:

Familiar with the rules of the game in the international capital market;

Familiar with the marketing in the country where the project is located;

Familiar with the operation of engineering subcontracting market;

Familiar with project construction management;

Must have strong project operation ability.