Alternative concession model for build operate transfer contract projects

L. Y. Shen, Heng Li, Q. M. Li

Research output: Journal article publicationJournal articleAcademic researchpeer-review

118 Citations (Scopus)

Abstract

This paper develops an alternative concession model for build operate transfer (BOT) infrastructure projects. The concession period is a measure for deciding when the project ownership will be transferred from the investor back to the government concerned; it also demarcates the benefits, authorities, and responsibilities between the government and private investors. Previous studies have developed various techniques and methods, mainly suggesting proper organization structure, contracting procedures, methods of project financing, and risk allocation strategies when BOT-contract projects are implemented. These works have provided effective methodologies for the development of BOT contracts. Nevertheless, it appears that little has been undertaken in studying the way to determine the concession period in a BOT contract. This paper critically reviews the principles of establishing the concession period in a BOT contract. Such a review leads to developing a quantitative model for determining a proper concession period that can protect the interests of both the government concerned and private investors. An example is given that indicates how the alternative model can be applied to determine the concession periods of BOT infrastructure projects.
Original languageEnglish
Pages (from-to)326-330
Number of pages5
JournalJournal of Construction Engineering and Management
Volume128
Issue number4
DOIs
Publication statusPublished - 1 Jul 2002

Keywords

  • Build/operate/transfer
  • Contracts
  • Infrastructure
  • Models
  • Project management

ASJC Scopus subject areas

  • Civil and Structural Engineering
  • Building and Construction
  • Industrial relations
  • Strategy and Management

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