Study on Investment Risk Management of Highway Project in China

Infrastructure is an important essence in economic growth and development. Good and adequate infrastructure increases productivity and reduces production costs. The economic growth of China has resulted in more demand for basic infrastructure like roads, ports, and power generation facilities. The Chinese government has been promoting involvement of private enterprises and foreign investors in development of highway projects with a focus on overcoming the limitations of the traditional public procurement system. Based on the theories of risk management and financial investment, it introduced the characteristics of investment risk of the highway project, showing the necessity and importance of project risk management. Then, it analyzed main risk types in different phases of project, and proposed constructive measures for risk evaluation during the project implementation. Finally, it put forward some methods to keep project risks away, including risks sliding over, risks transfer, risks keeping, and risks control.