A Case Study on International Engineering Risk Management Under BOT Model: The case of Yavuz Sultan Selim Bridge in Istanbul

Abstract

Since the Turkish Prime Minister Ozal had put forward the basic concept of BOT project in the 1980s. It has become the construction mode favored by governments of most countries, especially in developing country. The BOT mode is mainly applicable to some complex large-scale infrastructure construction projects. In China, with the continuous improvement of economic capacity, the government pays more attention to the construction of infrastructure. But owing to this kind of project’s feature, it will bring a great financial pressure to the Chinese government. So, the BOT mode is the best choice for the government. But as the BOT mode itself involved in multilateral cooperation, even include the foreign partner, and combined with the particularity of the project itself. It has the types of risk is more than conventional projects. Therefore, risk management and control of it is what we need to research and focus on. This paper takes Istanbul Yavuz Sultan Selim (hereinafter referred to as YSS Bridge) Bridge project as an example. The paper based on the basic theory of BOT project and risk management theory, analyzes the whole process of risk management in international BOT mode project, and then analyzes how to take measures to prevent possible risk events in the case of cross-border cooperation.