The Huaibei power plant and its implications for the Chinese BOT market
By: Nigel Smith
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Contributor(s): Hao Zhangb | Yiran Zhu.
Material type: 
ArticlePublisher: Nijkerk : Elsevier, 2004International Journal of Project Management 22, 5, p. 407-413Abstract: This paper is a longitudinal case study, from 1992 to the present, of a Chinese Build-Operate-Transfer, (BOT), project, the Huaibei power plant. The Huaibei project, unlike the better known Sharejio B and C or Laibin B power plant BOT projects which were undertaken solely by foreign contractors, is one of the first projects based on the Sino-Foreign Cooperative Joint Venture model (CJV) involving largely Chinese state-owned enterprises (SOEs). For this type of CJV it is interesting to note that revenues from tax-savings and labour-cost savings become significant for the SOE organisations. By studying how the Huaibei ownership has evolved over the last 10 years and how the main CJV participants have coped with the problems which have arisen, the case not only illustrates the well-known difficulties associated with Chinese BOT projects but suggests possible ways for the project manager to overcome or mitigate these difficulties
This paper is a longitudinal case study, from 1992 to the present, of a Chinese Build-Operate-Transfer, (BOT), project, the Huaibei power plant. The Huaibei project, unlike the better known Sharejio B and C or Laibin B power plant BOT projects which were undertaken solely by foreign contractors, is one of the first projects based on the Sino-Foreign Cooperative Joint Venture model (CJV) involving largely Chinese state-owned enterprises (SOEs). For this type of CJV it is interesting to note that revenues from tax-savings and labour-cost savings become significant for the SOE organisations. By studying how the Huaibei ownership has evolved over the last 10 years and how the main CJV participants have coped with the problems which have arisen, the case not only illustrates the well-known difficulties associated with Chinese BOT projects but suggests possible ways for the project manager to overcome or mitigate these difficulties
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