Risk Management on Build-Operate-Transfer Projects
by John E. Schaufelberger, (Associate Professor, Department of Construction Management, University of Washington, 116 Architecture Hall, Box 351610, Seattle, WA, 98195-1610 E-mail: jesbcon@u.washington.edu)
pp. 1-10, (doi: http://dx.doi.org/10.1061/40754(183)91)
Access full text
Purchase Subscription
Permissions for Reuse 
| Document type: |
Conference Proceeding Paper |
| Part of: |
Construction Research Congress 2005: Broadening Perspectives |
| Abstract: |
The build-operate-transfer (BOT) method of developing public infrastructure has been used for many projects in Asia. Unfortunately, about 30% of the BOT projects have had disappointing results. In undertaking such projects, the private sector incurs significant risks that must be understood and managed for such projects to be successful. This paper reports the results of a study of seven Asian BOT projects undertaken to determine the primary risks the project sponsor faced, the risk management strategies that were selected, and the results obtained. Two major categories of risk were identified, general risks and project-specific risks. From this analysis, a risk management framework was developed for each category of risk. The results of this study indicate that the private sector cannot be the only participant in risk management, but that the host government’s active support is essential to have a viable BOT project in Asia. |
|
