BOT Model Will Inaugurate 3 Mega Projects in Next Month

In Pakistan, BOT is a relatively innovative approach to infrastructure development, which enables direct private sector investment in large-scale infrastructure projects.

The BOT refer as follows:

Build – A private company (or consortium) agrees with a government/private owner to invest in a infrastructure project.

Operate – The private developer then owns, maintains and manages the facility for an agreed concession period and recoups their investment through charges or tolls.

Transfer – After the concessionary period the company transfers ownership and operation of the facility to the government/private owner or relevant state authority.

There are number of stakeholders in any BOT project and all of them have particular reasons to be involved in the project. The major stakeholders of a BOT projects usually include:

  • Government Owner (Government Client)
  • Private Owner (Private Client)
  • Sponsor
  • Contractor
  • Construction Contractor
  • Operation and Maintenance Contractor
  • Financers
  • Other Parties

Trend of BOT Projects in Pakistan

Globally research and implementation on BOT project delivery system has directed various effective routes to utilize private sector funds, technology innovation, management skills and operational efficiencies for the development of public infrastructure.

The Government of Pakistan and private owners in last decade in various capacities offered BOT projects. The induction of BOT concept and launching the projects was very healthy but the implementation, policies and strategies were lagging. However, the BOT projects trend did not get the success in its realization and relevance.

Conclusions and Recommendations

  • The concept of BOT in Pakistan is still new, so it should be introduced to the construction industry and organizations in Pakistan through presentations, lectures, seminars etc.
  • The success factors of BOT projects based on the international case studies and research should be brought in the information of Employers launching BOT projects.
  • The pre-qualification mechanism of BOT projects in Pakistan is required to be amended and research is required to be carried out that why the substantially strong projects offered are unable to get the attention.
  • The stakeholders of commenced BOT projects should be referred to others for the sharing of the success.
  • The guarantees, bonds, surety consideration are required to be relieved in compliance with running international criteria to attract more foreign financers.
  • The benefits earned from the BOT projects should be highlighted in media to gain the attention of local and foreign investors.
  • The political and economical constraints are very vital in planning as well as in construction of BOT projects.
  • The devaluation of Pakistani rupee, alternate energy sources, high banking interest rates and high oil prices in Pakistan are the major economical constraints, which provokes thoughts in the stakeholders policies to participate effectively in the BOT projects.
  • The suicide attacks and political instability in recent years are the major political constraints encountered in the decision making of the organizational management structures to finance or launch its projects in Pakistan.
  • The way out to mitigate the challenges and risks encountered in BOT projects should be established.

Similar Articles



Please enter your comment!
Please enter your name here


Most Popular