Owing to the high cost of large construction projects in recent years, build-operate-transfer (BOT) contracts are getting popular in the global construction market, especially in infrastructure construction. With BOT, the government is able to put projects on track without concerning itself too much about raising funds. On the other hand, due to the fact that the concessionaire who is awarded the project is responsible for the operation of the end facility for a certain period of time, reliable quality of the facility and effective operation could be expected. This paper introduces the financial model used by the Bureau of Taiwan High Speed Rail for its BOT projects. The parameters and variables of the model are presented. Its basic assumptions, input data, cost requirement, self-financing ability analysis, financial statements, and indices are discussed. The scenario analysis is used to highlight the application of the model.
