Optimizing a Build-Operate-Transfer Road Project

This paper describes how private provision of public roads, typically through build-operate-transfer (BOT) contracts, is increasing around the world. Under a BOT contract, a private firm would build a road, charge tolls to road users for a period, and then transfer the road to the government. A road BOT contract has three fundamental variables, i.e. concession period, road capacity and toll charge. The paper studies how to simultaneously set the three variables to maximize social welfare, while allowing the private sector an acceptable profit. A strategy is proposed for the government to obtain a socially optimal BOT contract in the bilateral negotiation with a private firm.

• Corporate Authors:

  World Conference on Transport Research Society

  Secretariat, 14 Avenue Berthelot
  69363 Lyon cedex 07,   France 
• Authors:
  • Guo, Xiaolei
  • Yang, Hai
• Conference:
  • 11th World Conference on Transport Research
  • Location: Berkeley CA, United States
  • Date: 2007-6-24 to 2007-6-28
• Publication Date: 2007

Language

• English

Media Info

• Media Type: CD-ROM
• Features: Appendices; Figures; References;
• Pagination: 21p
• Monograph Title: 11th World Conference on Transport Research

Subject/Index Terms

• TRT Terms: Build operate transfer; Concessions; Contract administration; Highway capacity; Private enterprise; Road construction; Toll collection; Toll roads
• Uncontrolled Terms: Negotiations
• Subject Areas: Administration and Management; Finance; Highways; I10: Economics and Administration;

Filing Info

• Accession Number: 01129329
• Record Type: Publication
• Files: TRIS
• Created Date: May 22 2009 10:07AM