Decision making Model and Analyses on Concession Term for BOT Projects by Stages

Abstract:

Assuming that the build operate transfer(BOT) projects be constructed by stages but transferred in the same time, a new decision making approach and model on concession term is presented based on real option. In order to preserve the profit of the government and construction quality of project, the approach to scientifically choose the concession term for BOT projects is analyzed in details. Finally, numerical experiment for practical engineer project further illustrates the proposed model is feasible and efficient.