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The Application of Dynamic Theory Games of Complete Information in How to Determine the Concessionary Terms of BOT Project Financing
Author: ZhangGuoJie
Tutor: GaoLiFeng
School: Shenyang University of Technology
Course: International Trade
Keywords: BOT Concession period Complete information dynamic game
CLC: F224.3
Type: Master's thesis
Year: 2005
Downloads: 415
Quote: 3
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Abstract
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The relative lack of infrastructure construction has become a bottleneck restricting the economic development of many countries today. A very large demand for infrastructure construction funds rely on government investment, the vast majority of countries is difficult to assume that the BOT project financing can solve this problem. As we all know, the core issues of the BOT project financing risk sharing and management issues, and the key to solve the problem of how to determine the concession period. Concession period is too short, the project company in order to reduce costs, profit, and is bound to select less investment in construction costs and lower operating maintenance costs, and even lead to predatory operations of the project company, will affect the quality of the construction of the project and high maintenance costs or operational period greatly shorten the lifecycle, so the project is handed over to the government, reduced government revenue. Government to extend the concession term incentive program to increase investment in the construction and operation of the project, in order to improve the quality and technical level of the project construction, but the concession period is too long in turn reduce the revenue of the government departments. This concession period optimal decision exists, making the government's utility maximization. Introduction of game theory to the determination of the concession period, this is a new field of study of the concession period. Actual BOT project revenue is relatively stable and unstable both cases, the establishment of a two-game model. \BOT concession period as a \The income the relatively unstable BOT project, the use of calculus in the game model to calculate where the cost factor is the size of the concession period. Financing proposed in BTOT, also derived to determine the concession period, it is the increase in the BOT financing concession period can be corrected. \Course, BTOT proposed financing is based on the theoretical basis and the case, in practice, many projects have applied this idea. This paper argues that most existing BOT project is in construction and operation, as time goes on, it will constantly exposing problems, both the government and the project company will dispute the concession period continuous. So, BTOT financing will be applied, at least the \
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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods > Operations Research in the economy
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