BOT application in China: Driving and impeding factors

To adapt to the specific investment environments of China, the generic Build–Operate–Transfer (BOT) process has evolved into five basic BOT types with foreign private sector participation: Cooperative Joint Venture BOT (CJV BOT), Equity Joint Venture BOT (EJV BOT), Non-official Wholly Foreign Owned BOT, Official BOT, and BOT Variant. This study identified the driving and impeding factors about BOT application in China, and a survey of experienced practitioners indicated that the most significant driving factors are Needing infrastructure development capital; the most significant general impeding factors include complex financial arrangement, complex contractual arrangement, high up-front cost, complex process, and high risk; and the most significant China-specific impeding factors are opaque and inadequate legal system, complex approval system, Regulatory constraints on market entry, and low market prices for infrastructure products and services.