Allocation of Risks Under Build-Operate-Transfer Delivery Approach for Transport Infrastructure Projects

Abstract

The need for the build-operate-transfer (BOT) approach in the development of infrastructure projects has risen in recent years, due to budgetary and financial constraints faced by the public sector in both developing and developed countries, tightened by the necessity to repair, maintain, and modernize the existing infrastructure facilities. Risk factors that influence the parties of a prospective BOT contract during the various phases of the contract are presented. In particular, the factors pertaining to the precontract stage and to the political, construction, commercial, and financial categories of possible risks are addressed. Integrated schemes assimilating the risks involved and the corresponding alleviation measures are offered.