Performance Risks Allocation in Bot Infrastructure in Nigeria: A Case Study of Lagos Infrastructure Project

Abstract

Abstract The study assessed allocation, criteria and allotment effectiveness of performance risks in Build- Operate-Transfer (BOT) transportation infrastructure in Nigeria using Lagos Infrastructure Project (LIP) as a case study. LIP is the only BOT-procured tolled road that has attained ‘operate’ stage of BOT cycle in Nigeria. It revealed that more operating risks were actually allocated to the concessionaire than the grantor and most of the risks were preferred retained by the allottee. Significant fraction of the risks was effectively allocated between the concessionaire and grantor except those that involve close interface between participants. While grantor rated nine risks high and seven risks very high; the concessionaire assessed nine risks to be high and five risks to be very high; the grantor rated the effectiveness level to be seventy three per cent and the concessionaire assessed it to be sixty four per cent. The study recommended that the evolving knowledge from Lagos Infrastructure Project (LIP) should be documented to guide future BOT transactions in Nigeria.