| Abstract: | Build-operate-transfer (BOT) projects have become of increasing interest over the last few years. The BOT model entails a concession company providing the finance, design, construction, operation and maintenance of an asset for a fixed period, at the end of which the asset is transferred free of charge to the client. The paper outlines the nature of BOT projects, and examines aspects of the financial and contractual arrangements associated with BOT methods. The financial aspects include the raising of finance, the assistance needed from the host government, the use of existing facilities, the retention of title and construction-cost overrun. The methods of forming the concession and the construction and operation agreements, and the role of the maitre d'oeuvre, are also discussed. |
