This paper examines some of the potential risks and returns associated with a Build-Operate-Transfer (BOT) approach, which constitutes one of several options on the spectrum of public-private partnership (PPP) arrangements. In so doing, the authors outline an analysis framework designed to address several of the decisions which confront both the public and the private sectors when assessing the suitability of a project for a PPP approach. As part of this framework, the authors briefly describe an economic evaluation/investment model which can be used for both deterministic and probabilistic analyses, from which valuable insights dealing with the behavior of PPP projects can be drawn. They include: quantification of overall economic and financial performance as a function of different variable values; estimation of overall risks, their composition and probabilities of failure; bounds on rates of return; tradeoffs between rates of return, toll levels and risk assignment strategies; and the relative effectiveness of different strategies for project speed-up.


  • English

Media Info

  • Features: Figures; Tables;
  • Pagination: v.p.

Subject/Index Terms

Filing Info

  • Accession Number: 00720508
  • Record Type: Publication
  • Files: TRIS, ATRI
  • Created Date: Apr 15 1996 12:00AM