Impact of Financial Package versus Technical Solution in a BOT Tender
Publication: Journal of Construction Engineering and Management
Volume 121, Issue 3
Abstract
The two main components in the tender of a privatized infrastructure project let under the build-operate-transfer (BOT) contractual arrangement are the technical design and the financial package. This paper examines the impact of a financial package when assessed against the technical design during the selection process. It is concluded that the ability to provide an attractive financial package is critical under the conditions when (1) the project is technically certain; (2) the tolls to be charged are of government's main concern; (3) competition is keen; and (4) the project viability and financing are uncertain. However, promoters must not underestimate the importance of an innovative technical solution as it could make an attractive financial package possible. The role of an innovative technical solution was never in question in the cases studied in spite of the great importance attached to the financial package by the governments.
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Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 121 • Issue 3 • September 1995
Pages: 304 - 311
Copyright
Copyright © 1995 American Society of Civil Engineers.
History
Published online: Sep 1, 1995
Published in print: Sep 1995
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