Government support and risk-return trade-off in China's BOT power projects

摘要

Government support plays an important part in risk-return trade-off of participants in privately financed infrastructure projects. Depending on the level of gov- ernment support, risk-return trade-off of the private sponsor varies from project to project. Case studies on two of China's build-operate-transfer (BOT) power projects that were developed at different time periods illustrate that government support has a significant ef- fect on both risk and return of the private sponsor. It is hoped that such understanding would help the private sponsor strike desirable risk-return trade-off in structur- ing a BOT deal.