Study of Financial Risks Involved in BOT Projects

Pankaj bhangale, Renu upadhyay


Thus new techniques were required to develop for attracting private sector investment in infrastructure projects. One such technique is built-operate-transfer (BOT) and its different variants. Under this scheme an infrastructure projects conceptualized by the government/public. Bids are then invited from private sector to arrange funds, build the facility and operate over a specified concession period collecting revenue as a toll from the user to recover the invested capital plus an adequate return on the investment usually 15 to 20 percent. After the concession period the ownership of the created facility is transferred back to the government. Therefore, the BOT scheme is a limited-recourse project financing technique for implementing infrastructure projects by using private funding.


(BOT), risk management, financing

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