Current article

Research On Basic Principles of BOT Concession Agreement


Ren Bo

DOI:10.11835/j.issn.1674-4764.1999.02.020

Received ,Revised , Accepted , Available online July 01, 2015

Volume ,1999,Pages 95-99

  • Abstract
The BOT model is a new investment and finacing model which is applied to infrastructure construction. The concession agreement is awarded by government to the project company which operates and develops specific BOT project with concession right, it is the core of the BOT project and decides the basic structures and pattens of other agreements.The government bears the definite responsibility for the success of the BOT project.There are seven factors to be worth notice when the government contrives the BOT concession agreement. 1.The govemment should stick to native standpoints and interests and, at the same time take the investor's rights and interests into account;2. lighten the burden of the government as much as possible, without abandoning its responsibility;3.fully understand and apply the International Customs and Practice of the BOT model with considering the situation of the country; 4.pay equal attention to the introduction of both capitals and technology; 5.properly handle the relationship between the introduction of foreign capital and domestic economic development; 6. encourage the active externality, and restrict the passive one; 7. prevent and eliminate the ill monopoly.