Abstract— This paper proves that the minimum volume guarantee and concession price adjustment schemes are important means of the government to transfer the project risks by measuring the impact of the minimum volume guarantee and concession price adjustment schemes on the BOT project's earnings. We analyzed the risk allocation function of the different volume guarantees and concession price adjustment schemes. The results of case analysis show that the low volume guarantee level and the reasonable concession price adjustment scheme can more effectively guarantee the reasonable profits of the project. And accelerate the implementation of BOT financing mode in wastewater treatment projects.
— Wastewater treatment project, minimum volume guarantee, BOT, concession price.
The authors are with the School of Economics & Management of China Petroleum University (East China), Shandong Qingdao, China (Corresponding author: Yanfang Sun; e-mail: email@example.com; jxsunyf@ 163.com; firstname.lastname@example.org).
Cite: Quyi Zhou, Yanfang Sun, and Dongchang Lu, " Concession Price Adjustment Decision in Wastewater Treatment BOT Project," International Journal of Innovation, Management and Technology vol. 7, no. 5, pp. 192-195, 2016.