Abstract: The build-operate-transfer (BOT) project delivery system has provided effective routes to mobilize private sector funds, innovative technologies, management skills and operational efficiencies for public infrastructure development and have been widely used in China during the last 20 years. Many BOT projects in China will be smoothly transferred to the government soon and the transfer stage, which is considered as the last stage, must be studied carefully and handled well to achieve the overall success of BOT projects. There will be many issues faced by both the public sector and private sector in the transfer stage of BOT projects, including project post-assessment, technology and documents transfer, personal training and staff transition, etc. and sometimes additional legislation is needed for future operation and management of facilities. However, most previous studies focused on the bidding, financing, and building and operation stages instead of transfer stage. This research identifies nine key issues in the transfer stage of BOT projects through a comprehensive study on three cases in China, and the expert interview and expert discussion meetings are held to validate the key issues and give detail analysis. A proposed framework of transfer management is prepared based on the experiences derived and lessons drawn from the case studies and expert interview and discussions, which is expected to improve the transfer management of BOT projects in practice.
Abstract: Infrastructure investments are important in developing
countries, it will not only help to foster the economic growth of a
nation, but it will also act as a platform in which new forms of
partnership and collaboration can be developed mainly in East Asian
countries. Since the last two decades, many infrastructure projects
had been completed through build-operate-transfer (BOT) type of
procurement. The developments of BOT have attracted participation
of local and foreign private sector investor to secure funding and to
deliver projects on time, within the budget and to the required
specifications. Private sectors are preferred by the government in
East Asia to participate in BOT projects due to lack of public
funding. The finding has resulted that the private sector or promoter
of the BOT projects is exposed to multiple risks which have been
discussed in this paper. Effective risk management methods and
good managerial skills are required in ensuring the success of the
project. The review indicated that mitigation measures should be
employed by the promoter throughout the concession period and
support from the host government is also required in ensuring the
success of the BOT project.