BOT model: The Portuguese case

The BOT model entails a concession company providing the finance, design, construction, operation, and maintenance of a privatised infrastructure project for a fixed period, at the end of which the project is transferred free of charge to the host government. In times of decreasing ability to raise funds for infrastructure projects, the BOT concept has been used by governments to implement privately financed construction projects. BOT mechanism offers increasing investment, construction, procurement, operation, and other business opportunities for private investors in infrastructure projects. However, under the BOT model, the responsibilities are heavy and stakes are high for both, governments and promoters. There are several constraints in successful implementation of BOT projects. The objective of the current study is to obtain feedback from government agencies (both central and local) on the current use of the BOT model in implementing infrastructure projects, and to examine current practice in Portugal by investigating theory and practice. Thus, a survey of the major government agencies, both central and local, was conducted in Portugal. This paper presents the findings of this survey and a review of seven concession projects. It shows that the most common BOT form used in Portugal is the Concession. Finally, it presents how the Concession concept is being applied through a review of the seven case studies.