Build-operate-transfer-type procurement in Asian megaprojects

Abstract

Lessons are drawn from the recent resurgence in public-private partnerships for the procurement of large scale infrastructure, with a focus on Asian megaprojects. BOT (build-operate-transfer)-type win-win cooperation aligns well with the paradigm shift that has repeatedly been called for in addressing construction industry shortfalls. However, the many volatile variables involved and the limited experience in dealing with the special risks encountered highlights the need for decision support frameworks to evaluate and select the optimal from among: (1) potential BOT-type projects; (2) prospective franchisees; and (3) innovative project financing packages. Such frameworks should include appropriate success criteria and indicators for their evaluation. Benchmarking of good practices would establish reasonable ranges of values for such indicators. Identification of critical success factors, classifications of common risks, and comparisons of recent experiences on BOT-type projects lead to recommendations for the development of a "BOT body of knowledge" with related guidelines and toolkits. These would assist both public and private sector decision makers considering BOT-type modalities to attain multiple win-win-win targets that benefit their respective interests, as well as those of the general public end users.