Institute of Transportation, MOTC

　　This paper develops an analytical model to explore the relationship among the PCCR (private construction cost ratio), GCCR (government construction cost ratio), royalty payment, and GFRR (government finance recovery ratio) from the government’s perspective. The purpose of this paper is to modify the drawbacks of SLR (self-liquidation ratio) in the present BOT financial model in which the SLR cannot be appropriately used to analyze the government cost and financial recovery in the BOT projects. In this paper, a numerical example is conducted to find the optimal solution for PCCR, GCCR, royalty payment, and GFRR. The results of numerical example show that the BOT financial model could be operational and explain the relationship of PCCR, GCCR, royalty payment, and GFRR in the BOT projects.