Shen, L Y; Li, H and Li, Q M (2002) Alternative concession model for build operate transfer contract projects. Journal of Construction Engineering and Management, 128(4), pp. 326-330. ISSN 0733-9364
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.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | build/operate/transfer; contracts; infrastructure; models; project management |
| Index terms: | investor, risk allocation, infrastructure project, methodology, concession period, project management, financing, ownership, strategy, build-operate-transfer |
| Subjects: | infrastructure and transport systems, contract structure, management, sociology, contractual arrangements, economic analysis, financial risk, project management theory and practice, research methods, economics |
| Topics: | Cost Management, Engineering Principles, Procurement, Stakeholder Management, Organizational Design, Business Strategy, Research Practice, Project Management |
| Descriptive scope: | 3 PCT |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here