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China is gearing up for the introduction of build-operate-transfer (BOT) contracts on a larger scale to attract significant foreign investments for infrastructure development. Since late 1996, several pilot BOT concessions have been awarded, including the first state approved BOT project, the Laibin B Power Plant. There are thus opportunities for foreign investors. It is important to identify and manage the risk associated with china9s bot power projects. An international survey was conducted during late 1997 and early 1998 to seek the views of international professionals. This article discusses the results of that survey and proposes a risk management framework for investing in future BOT power projects in China.
Wang et al. (1999) studied this question.
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