BOT Contracts: Applicability in Pakistan for Infrastructure development

S. Mubin, A. Ghaffar

Abstract


Pakistan is a developing country. It is lacking infrastructure almost in every field, like rail and road, water supply, sewage, waste disposal and oil and gas transportation network. Infrastructures projects are usually mega-projects, which are normally owned and financed by federal/provincial governments. Due to lack of resources governments are unable to start such infrastructure project on a faster pace to meet the demands. To counter the paucity of funds in public sector, many governments have engaged the private sector to develop their infrastructure. These public-private partnerships have different forms of contracts i.e. Build-Own-Operate (BOO), Build-Operate-Transfer (BOT) and Build-Lease-Transfer (BLT). In developing countries like Pakistan these types of contracts can play important role in infrastructure development. Unfortunately this concept is not very popular in Pakistan. Apart from benefits, BOT contracts may be complicated due to its long term contractual obligations and multi party involvement. For that purpose legal, economical and technical framework needs to be developed on large scale for successful execution of BOT projects. Keeping in view the above requirements a model has been developed for successful implementation of BOT projects in Pakistan. To counter the associated risk in BOT projects a risk management model is also proposed.

Full Text:

PDF

References


Chaudhry, M.; Weekly Pakistan and gulf economist, 11 (1), (2002), 35-37.

Walker, Charles and Smith, A.; Privatized Infrastructure: The Build Operate Transfer Approach, Thomas Telford publications, London, UK (1995), 21-26.

Kumaraswamy, M. M. and David, A. M.; ASCE journal of construction engineering and management, 45 (3), (2002) 93-102.

Lewis, T. and Sappington D.; “Incentives for conservation and quality-improvement by public utilities", American Economic Review, 82 (5), (1992) 1321-1340.

Maskin, E. and Jean, T.; Review of Economic Studies, 66(1), (1999) 83-114.

Ott, A. F. and Keith, H., Privatisation and Economic Efficiency, Edward Elgar Publishing Ltd, Hants, England, (1991), 12-16.

World Bank Infrastructure Development in East Asia and the Pacific, World Bank, Washington DC, (1995), 1-3.

Rohwer, J.; Asia Rising, Butterworth-Heinemann Singapore, (1995) 212-215.

Paul, H.; BOT Privatization in Asia: Distorted goals and processes, (1997), 2-6.

Maskin, E. and Jean, T.; Review of Economic Studies, 66(1), (1999), 139-149.

Official website of Pakistan www.pakistan.gov.pk and Punjab Govt. www.punjab.gov.pk accessed on 10-2-2008.

Dey, P. K., Ogunlana, S. O. and Takehiko, N; International Journal of Risk Assessment and Management (IJRAM), 3 (2002) 23-24.

Dey, P. K. and Ogunlana, S. O.; Industrial Management & Data Systems, 104 (4), (2004) 334-346.

Mubin, S. and Mubin, G.; Pakistan Journal of Engineering and Applied Sciences, 2(2008) 28-31.

Lewis, T. and Sappington D.; American Economic Review, 82 (5), (1992) 1321-1340.






Copyright (c) 2016 S. Mubin

Powered By KICS