Survey, the necessity of use and risk identification in BOT contracts

Abstract

By considering that the investment in infrastructure sector which is mostly done by the government has faced with very serious financial and low efficiency problems, the necessity of using the private sector participation in infrastructure projects is felt. Providing the necessary conditions for the private sector participation is the most important point in this regard which leads to investing with more confidence and security for the internal or external private sector. The contract of Build - Operate - Transfer (BOT) is one of the main approaches of private sector participation in infrastructure projects. In order to increase the involvement of the private sector, it is necessary to include the conditions and main factors of success in both investee and investor sides. In this paper, after investigating the structure and the necessity of using this contract, suitable projects were presented for usage and finally, the risk of these types of contracts will be evaluated.