Abstract
SBOT (subsidize in building-operate-transfer) as a new BOT procurement model has been adopted in the construction of urban rail transit projects in China. Rent is one of the most important variables in arranging a SBOT contract which should determined considering the dynamic uncertainty arising from the volatility of the revenue generated by the project. Considering the integrated economy and social benefits of urban rail transit project, this paper presents a rent pricing model based on real option and optimal stopping theory on urban rail transit SBOT project. It derives the investment threshold to enter a SBOT contract under certain concession period and the feasible interval for rent. Finally, an example is referred to demonstrate the effectiveness of the proposed model.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
