Risk Management Framework for Build, Operate and Transfer (Bot) Projects in Kuwait

Abstract

Abstract. Successful implementation of build-operate-transfer (BOT), infrastructure projects is dependent on a full and thorough analysis of factors that include social, economic and political, amongst others. Alongside the financially focused evaluations, qualitative factors will also have a strong impact on the project and so require specific techniques for the analysis. This paper presents a new evaluation framework, based on the analytical hierarchy process technique, for use in assessing the most common and significant decision factors relating to risks in BOT projects. Consultations with an expert group identified a series of risk decision factors. The results produced twenty-eight critical Risk Factors, which have a particular impact on the risks of BOT projects. The project risk framework was constructed by classifying the factors into five categories. The framework was successfully validated using a BOT project case study. This research seeks to make a valuable contribution to the field by having developed and validated a new risk evaluation framework, focused on BOT projects in Kuwait.

Sustainable infrastructure delivery in Nigeria: implementation of the analytic network process for contractor selection

“…Build-operate-transfer (BOT) model is often referred to as a core PPP due to a substantial amount of risks being transferred to the private sector [9,19,20]. Myths of BOT includes the reliance on private funding as a debt relief for MDAs, transfer of project risks to the private sector, empowerment of locals through technology transfer and training programmes.…”

“…Myths of BOT includes the reliance on private funding as a debt relief for MDAs, transfer of project risks to the private sector, empowerment of locals through technology transfer and training programmes. BOT strategy involves the granting of franchise or concession by the public or private sector to private entity, referred to as the concessionaire [20] for the procurement of infrastructure. Concessionaire, otherwise known as project consortium or special purpose vehicle (SPV), is a group of private investors.…”

“…The project is then returned to the client at the end of the concession period at no cost. Though BOT has gained global recognition back to nineteenth century [20], it is at the experimental stage in Nigeria. The first set of concession-based projects was commissioned around 2006 [9].…”

Operation Maintenance Contract Scheme in Railway Infrastructure Project

“…In the contract, the government will build the infrastructure and further private sector operate and manage the infrastructure for a specified period [6,7]. The type of contract has been applied in many other countries and sectors such as road and port development.…”

The Multicriteria Assessment of the Spatial Planning Process: The Aspect of Investment

“…The critical factors affecting contractors' risk attitudes in construction projects in China were investigated by Wang and Yuan (2011). Al-Azemi et al (2014) presents an evaluation framework based on the analytical hierarchy process technique used for assessing the most common and significant decision factors relating to risks in build-operate-transfer projects. Ng and Loosemore (2007), Abednego and Ogunlana (2006), Ke et al (2010Ke et al ( , 2012, Bing et al (2005) analyse risk distribution between public and private sectors and their consequences.…”