The research on the method of determining BT project repurchase price

Author

Gao, Xi-Zhen

Author_Institution

Manage. Sch., Tianjin Univ. of Technol., Tianjin, China

fYear

2010

fDate

29-31 Oct. 2010

Firstpage

286

Lastpage

289

Abstract

BT model is widely used in municipal infrastructure construction financing in recent years. The repurchase price of BT project is the core issues between project sponsor and BT investors. Repurchase price consists of two parts: project settlement price and investment income. Return on investment is closely related to bank lending rates, social discount rate and the risk level of investor tolerance. By utilizing CAPM model, the author analyzed how to determine the rate of return required by investors, which effects the return on investment of BT project. The calculating formula of return on investment of BT project is proposed according to different repurchase manner.

Keywords

financial management; investment; pricing; project management; public finance; BT project repurchase price; CAPM model; bank lending rate; building-transfer; investment income; investor tolerance; municipal infrastructure construction financing; project settlement price; return on investment; risk level; social discount rate; Biological system modeling; Indexes; BT project; CAPM model; Repurchase price; Return on investment; Risk analysis;

fLanguage

English

Publisher

ieee

Conference_Titel

Industrial Engineering and Engineering Management (IE&EM), 2010 IEEE 17Th International Conference on

Conference_Location

Xiamen

Print_ISBN

978-1-4244-6483-8

Type

conf

DOI

10.1109/ICIEEM.2010.5646663

Filename

5646663