THE NEW FINANCE MODEL OF BOT PROJECTS

Abstract

The purpose of this paper is to develop new financial models of BOT projects to replace the SLR (self-liquidation ratio) since SLR cannot be used to analyze BOT projects. In this paper, we use the financial cash flow concept and mathematical analytical method to develop the PCCR (private construction cost ratio), GCCR (government construction cost ratio), ongoing royalty, and GFRR (government finance recovery ratio) for the BOT finance policy decision model. Also, we explore the relationships among the PCCR, GCCR, ongoing royalty, and GFRR models.