Build operate and transfer (BOT) or build own operate and transfer (BOOT) is a type of arrangement in which the private sector builds an infrastructure project, operates it and eventually transfers ownership of the project to the government. These project components are procured from the private sector in a single contract with financing secured by the public sector. During the period, the private sector has the responsibility to raise the finance for the project and is entitled to retain all revenues generated by the project and is the owner of the regarded facility. The end of concession agreement the private sector will transferred the facility to the public administration.
Advantages and disadvantages of build operate and transfer
Advantages
• BOT projects offer the possibility of realizing a project that would otherwise not be built.
• The willingness of equity investors and lenders to accept the risk indicates that the project is commercially viable.
• A boot project will help in a government's policy of infrastructure privatization.
• The efficiency of the promoter and its economic interest in the design, construction and operation of the project will produce significant cost efficiencies to the principal when the concession period ends.
Disadvantage
• Different objectives between the constructors and operators which may have an influence in several issues, including the quality of the civil work.
• Duplication of functions and resources in some cases in the consortium and in the subcontracting companies.
• Difficulties of relations between the different parties. Particularly the assignment of responsibilities is a major issue.
Real case study
Example
Case Study 2: The Kuala Lumpur-Kuala Selangor Hig...
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...n be seen as a developing technique for infrastructure projects by using private initiative and funding. Such infrastructure projects include a wide array of public facilities with the primary function to serve public needs, to provide social services and promote economic activity in the private sector. With turnkey contracts, the owner buys a package of site, design and finished building, while the developer secures financing, manages the project flow and coordinates the architect and the contractor. BOT is closer to total product delivery where in addition to financing and development, the supplier is also responsible for the operation of the facility.
References
1. http://www.llmnet.gov.my/serverpages/common/about_us.aspx
2. http://faculty.ksu.edu.sa/algahtani/GE%204021/GE402-Topic_10-contracts.pdf
3. http://www.tayebfc.com/documents/PRIVATIZATION.doc
Writer Marilyn Vos Savant once stated, “What is the essence of America? Finding and maintaining that perfect, delicate balance between freedom ‘to’ and freedom ‘from’.” When you are an American, freedom is just one of the multitudinous privileges that come with the package. Benefits such as rights, the pursuit of happiness, and diversity are some additional perquisites. However, everything has flaws and America has a few.
America the home the free and the brave is a term coined by past generations as a well known saying that patriots hold true,however not all people feel that is a true statement. America a place known for its freedom of speech,right to bear arms and the freedom to be whomever you want, however, for some the American dream is not a reality privileged to all. Millions of people walk the streets of American suburbs and shuffling cities everyday,some just stopping at their local corner store or hustling to get to their place of employment. Many minorities think of the start of their day to be an everyday struggle that is filled with a daily reminder of prejudicial viewpoints,racial profiling and competition at every corner they turn. America is not so kind to everyone,minorities are often the cause of media exploitation,false criminal statistics and mass media hype.
America is the nation of immigrants. America was founded on the principals of freedom of speech, equality, and the pursuit of happiness and this principle of freedoms encouraged people to come to America. To be an American does not simply mean being born on American soil, it means that one believes and supports the beliefs of American principles. Scruton stated that, “to inherit a culture you must identify with it; and if you cannot identify with it, then you must find a new identity by rejecting it.” To be American is to live by its values, such as patriotism, individualism, conformity, success, and equality. While these are American values, the conflicts that occur between values and those that hold these values is what makes an American. These values lead Americans to become loyal yet logical, expressive yet traditional, and hypocritically tolerant or truly tolerant yet discriminating, all because we hold dearly the tenets of freedom to speech, liberty and pursuits of happiness.
Design – Build – Maintain: Public sector operates and finances the project and the private partner’s roll is to design, construct and maintain the facility for a specified time
Being an American means that I am free and that I can vote. It also means that we should be treated equally no matter what skin color you have and it doesn’t matter what culture you came from. You should be able to speak your mind, attend the church you want to attend, celebrate the holidays you want to celebrate and be a slave to no one. Being an American means that you are part of one of the most diverse cultures in the world. When most people think of American, some of the first things that come to mind are, freedom and liberty. We have already touched on this when talking about freedom of speech but freedom and liberty are very important in the American culture and are a big part of what it means to be an American. American citizens have the freedom to live the lives that they choose and are passionate about retaining that right which so many of their predecessors have fought and died for. We have people everyday leaving their families to go fight for us so we can have freedom.
...hanges were made, and thus the government has allowed the private stakeholders to undertake construction of infrastructure. This was the aftermath of the adoption of public-private partnership policy in 2009.
America is the land of the free and the place of opportunities for everyone. Where the common man can life a comfortable lifestyle. A country that allow people to live a long, prosperous life. The red, white, blue that provides individuals to believe in their own religious, politics, and decided their own choices. The place that accept and respects various cultures, which has various customs. However, the ethnicity of people should be respected, too. Right now, America only recognized black people for their physically contributions such as fashion, music, art, but reject the race of black people.
Ever since it was founded, United States has always been a melting pot for diversity as it continues to become diverse as time pass by. Diversity can be described as a scenario where an organization or even a nation has different people from various races and cultures. The United States is known for its diversity as many people go there due to the availability of opportunities. Diversity was once regarded as a tool that brings people together, but this is not the case anymore. This is because diversity has now gone to become an asset. As they go there, these immigrants carry with them their cultures and norms including their religion which brings about regions diversity. Many people tend to believe that religious diversity is helping America
“The land flourished because it was fed from so many sources- because it was nourished by so many cultures and traditions and peoples”. President Lyndon B. Johnson spoke of the positive aspects of diversity, and how differences brought good. The United States was built by people in search of a better life. They saw so much potential here and had the chance to begin again and improve upon past morals.*
BOT basically is a type of contract which involves two sectors that are private and government. The government requested the private sector to provide some infrastructure for the living, so that it can helps in the development of the country. The non-government sector will design, provide finances, construct and also operates the facility (building, school, road, etc.). After some period of time, the ownership will be transferred back to government. It is possible because of the process of concession where the private sector will take the benefits from the operation of the building and then after the concession finished, the ownership can be given to government.
America is one of the most powerful and revered countries in the world, with over 300 million people residing within its borders. These people are called Americans, despite actual ethnicity, race, or culture. They are all connected because they are Americans, though in reality they are so different that America might be called a melting pot of different people, opinions, and lifestyles. An American is defined as a person who is privileged to the rights and freedoms specified in the Constitution, who has responsibilities to one’s country in return for the freedoms it gives, and ultimately is entitled to one’s very own piece of the American Dream.
Privatization of infrastructure assets: financial structures, participant motivations, and lessee tax benefits. Khalid A. Razaki, Raymond Pollastrini, Robert J. Moreland. Journal of Finance and Accountancy http://www.aabri.com/manuscripts/121265.pdf
The physical- financial entity is a balance of two different components working towards the same common goal. Each one has their areas of focus and attributes to contribute to the project. If one has more influence than the other, an imbalance could occur and result in problems with the development and its success. The physical side must work with the architects, engineers, and construction team to create the schematic design and budget possibilities for the project in the predevelopment stage. This will include alternatives and rough preliminary designs. When the development moves over to the document development stage, they become responsible for the construction documents, budgeting, and schedules for the actual construction of the project. The financial side of the development involves the business side of the project. This is where the market and marketability studies will be conducted and various feasibility and investment analysis reports will be submitted. The financial entity of the development will continue to work through the predevelopment and document development stages to put forth the best suited analysis for the market, feasibility, and marketability studies.
First, traditional path is the tender documents have been prepared and then invite the tender and the employer appoints the contractor to construct the project.
Infrastructure Management and Construction deals with project management, construction materials, construction engineering and building engineering.