Alternate Financing Strategies for Build-Operate-Transfer Projects
Publication: Journal of Construction Engineering and Management
Volume 129, Issue 2
Abstract
This paper contains a study of build-operate-transfer (BOT) project financing strategies from the perspective of project sponsors. The financing strategy for a BOT project includes the selection of the appropriate mix of equity and debt financing, and the identification of appropriate financing sources. Project sponsors typically wish to minimize their financing costs to ensure their tenders are competitive. Thirteen transportation and power-generation BOT projects in North America and Asia were analyzed. Important considerations and financing strategies were identified and examined. The findings suggest that project risks, project conditions, and availability of financing are the major considerations in selecting a financing strategy. The project risks that were determined to be most significant in financing strategy selection were political, financial, and market risks. Based on the study findings, a decision model was developed that can be used by BOT project sponsors in selecting appropriate financing strategies.
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Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 129 • Issue 2 • April 2003
Pages: 205 - 213
Copyright
Copyright © 2003 American Society of Civil Engineers.
History
Received: Jun 29, 2001
Accepted: Feb 26, 2002
Published online: Mar 14, 2003
Published in print: Apr 2003
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