Governmental role in BOT-led infrastructure development

Abstract

BOT-type schemes are attracting increasing interest with the growing thrust towards privatizing infrastructure projects in both developing and developed countries. However, an intelligent allocation of risks is a prerequisite to success of this relatively new procurement route, amidst the many variables and unknowns in such 'long-term' and more complex scenarios. Concerted efforts from both government and private sectors, as well as appropriate political, legal and economic environments are also essential. This paper identifies and discusses various issues that governments need to deal with, for the BOT mechanism to work smoothly. These issues are further illustrated by relevant examples from Hong Kong experience in evolving an effective BOT project management framework for transportation/tunnel projects. © 2001 Elsevier Science Ltd and IPMA. All rights reserved.