A study on the successful implementation of infrastructure projects through BOT

Abstract

The Infrastructure projects have the major role in the development and growth of each country's economic development. In the past, these projects were financed by the government. However, due to population growth and greater demand for constructing and developing these projects and on the other hand an increase in costs and expenses of preparing these projects, government facing lack of funding and public deficits, the necessity of paying attention to the health and education sectors, have made governments to think up a new way for financing the project without public budget. One method of financing is borrowing which was not successful. Another approach is non-borrowing method, which is based on an investment or participating in investment, through which one of its ways is BOT method (building, operating and transferring), whereby, financing and construction of the project will be delegated to private or foreign investors. Successful implementation of this method depends on multiple factors Such as government support, dividing project risks between the parties to the BOT contract, using strong and experienced consortium, caring about priority projects and political, economic and legal stability.