Review of BOT Projects in Marketization and Innovation in Urban Water Sector in China: BOT WATER REPORT

LongLong Guo & HongBo Ma

Studenteropgave: Speciale


This thesis is the final work of my M.Sc. study about the Built-Operate-Transfer (BOT) within the China urban water sector marketization innovation for the fulfillment of the requirements at the Department of Environment, Social and Spatial Change – ENSPAC at Roskilde University in Denmark in the period from October 2006 to September 2007. A better infrastructure in the Chinese water sector may improve the quality of water and limit the water consumption. Constructing the perfect infrastructure depends heavily on investment by the Chinese government. The lack of public funds and the difficulties in obtaining financing are strong deterrents to water resources in China with economies under transition. Alternative financial mechanisms have been developed to overcome these barriers, such as Build-Operate-Transfer (BOT) that is the most popular PPP option adopted in Chinese cities nowadays. The application of BOT will not only decrease the environmental risks but also stimulate investors and users to protect the environment. The aim of the thesis research is to assess the BOT project in the China urban water sector marketization innovation. Therefore the problem formulation is “How can BOT projects be a successful with marketization and innovation in the urban water sector in China?”. In order to complete the research report and get a satisfied conclusion, we did a number of homework, not only the desk research, but also several onsite interviews with the relative experts, environmental companies, water/wastewater plants and environmental agencies in China. From the interviews 39 BOT projects were obtained. Six sample populations of 39 BOT projects were looked into and with text in detail out of the 39 and were investigated in depth. The data and materials needed in this research are mainly obtained by three methods. The theoretical framework of BOT water projects is derived from literature including previous studies and research, the publications of the related agencies, social and environmental institutions and academic organizations. The other method of data attainment is through consultations with experts and people who work in the involved organizations by e-mail contact, telephone interviews as well as face-to-face interviews. In addition, the other very important source is the Internet, where dynamic and up-to-date information is available. After having concluded the overview of China’s BOT projects and assessed the BOT contracts within the China urban water sector marketization innovation, in this last chapter, I am able to draw general conclusions and make some recommendations to improve the China’s BOT contracts. These conclusions and recommendations could also summarily answer the research questions listed:  What is BOT?  What kind of regulations and government guarantee on BOT projects have been adopted in China?  What is the background on China urban water sector marketization innovation?  What is the database of BOT water sector projects in China?  What should be done about the current BOT system? BOT approach as one of the PPP options is popular in China urban water sector nowadays. Since PPPs development is still at the early stage in China, the laws and provisions concerning investment of BOT project are not sufficient yet. Thus, not all the BOT projects went well, incomplete contract document could be an important reason.

UddannelserTekSam - miljøplanlægning, (Bachelor/kandidatuddannelse) Kandidat
Udgivelsesdato17 sep. 2007
VejledereAgger Peder


  • PPP
  • BOT
  • Concession
  • PPI