IDEAS home Printed from https://ideas.repec.org/a/taf/conmgt/v23y2005i4p431-441.html
   My bibliography  Save this article

The financial risks in build-operate-transfer projects

Author

Listed:
  • Yiannis Xenidis
  • Demos Angelides

Abstract

The build-operate-transfer (BOT) approach for developing infrastructure projects is a technique that allows fast realization of public works in cases of a shortage of public funds. This process is full of risks, due mainly to the complexity and extend of the disciplines, public agencies and stakeholders involved. The identification, classification and presentation of a comprehensive list of this type of risks will provide BOT project practitioners with a useful tool in the effort of setting up successfully a BOT concession agreement. The approach presented provides a practical insight into 27 financial risks, which are associated with the BOT projects in their lifecycle. This is achieved through proper justification and description of the content of each risk. Furthermore, a categorization of the risks is presented, according to the stage at which they occur and the sources of their origin. The findings of this research would facilitate the risk analysis process that is being conducted by risk managers prior to bidding for a BOT project and during the negotiation period.

Suggested Citation

  • Yiannis Xenidis & Demos Angelides, 2005. "The financial risks in build-operate-transfer projects," Construction Management and Economics, Taylor & Francis Journals, vol. 23(4), pages 431-441.
    • Handle: RePEc:taf:conmgt:v:23:y:2005:i:4:p:431-441
    DOI: 10.1080/01446190500041552
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/01446190500041552
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/01446190500041552?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. A. V. Thomas & Satyanarayana Kalidindi & K. Ananthanarayanan, 2003. "Risk perception analysis of BOT road project participants in India," Construction Management and Economics, Taylor & Francis Journals, vol. 21(4), pages 393-407.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abraham Park & Chen Yu Chang, 2013. "Impacts of Construction Events on the Project Equity Value of the Channel Tunnel Project," ERES eres2013_97, European Real Estate Society (ERES).
    2. Ling Jia & Queena K. Qian & Frits Meijer & Henk Visscher, 2020. "Stakeholders’ Risk Perception: A Perspective for Proactive Risk Management in Residential Building Energy Retrofits in China," Sustainability, MDPI, vol. 12(7), pages 1-25, April.
    3. Luis Aguilar & Juan David González-Ruiz & Sergio Botero, 2022. "Shareholder Option Valuation in Mezzanine Financing Applied to CO 2 Reduction in Sustainable Infrastructure Projects: Application to a Tunnel Road in Medellin, Colombia," Sustainability, MDPI, vol. 14(12), pages 1-13, June.
    4. Nguyen, Phong Thanh & Phu Nguyen, Cuong, 2019. "Risk Management in Engineering and Construction," MPRA Paper 103509, University Library of Munich, Germany, revised 09 Jan 2020.
    5. Ming Shan & Bon-Gang Hwang & Lei Zhu, 2017. "A Global Review of Sustainable Construction Project Financing: Policies, Practices, and Research Efforts," Sustainability, MDPI, vol. 9(12), pages 1-17, December.
    6. Bisma Mannan & Sonal Khurana & Abid Haleem, 2016. "Modeling of critical factors for integrating sustainability with innovation for Indian small- and medium-scale manufacturing enterprises: An ISM and MICMAC approach," Cogent Business & Management, Taylor & Francis Journals, vol. 3(1), pages 1140318-114, December.
    7. Zhao, Zhen-Yu & Zuo, Jian & Zillante, George, 2013. "Factors influencing the success of BOT power plant projects in China: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 446-453.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Henry J Liu & Peter ED Love & Jim Smith & Michael CP Sing & Jane Matthews, 2018. "Evaluation of public–private partnerships: A life-cycle Performance Prism for ensuring value for money," Environment and Planning C, , vol. 36(6), pages 1133-1153, September.
    2. Chandan Kumar, 2018. "Role of bidding method and risk allocation in the performance of public private partnership (PPP) projects," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2018-013, Indira Gandhi Institute of Development Research, Mumbai, India.
    3. Sy, Do Tien & Likhitruangsilp, Veerasak & Onishi, Masamitsu & Nguyen, Phong Thanh, 2016. "Different Perceptions of Concern Factors for Strategic Investment of The Private Sector in Public-Private Partnership Transportation Projects," MPRA Paper 96581, University Library of Munich, Germany.
    4. Abraham Park & Chen Yu Chang, 2013. "Impacts of Construction Events on the Project Equity Value of the Channel Tunnel Project," ERES eres2013_97, European Real Estate Society (ERES).
    5. Hongyan Chen & Ruwen Qin, 2012. "Real options as an incentive scheme for managing revenues in transportation infrastructure projects," International Journal of Revenue Management, Inderscience Enterprises Ltd, vol. 6(1/2), pages 77-101.
    6. Shubham Gupta & Raghav Khanna & Pranay Kohli & Sarthak Agnihotri & Umang Soni & M. Asjad, 2023. "Risk evaluation of electric vehicle charging infrastructure using Fuzzy AHP – a case study in India," Operations Management Research, Springer, vol. 16(1), pages 245-258, March.
    7. Fleta-Asín, Jorge & Muñoz, Fernando, 2020. "How does risk transference to private partner impact on public-private partnerships’ success? Empirical evidence from developing economies," Socio-Economic Planning Sciences, Elsevier, vol. 72(C).
    8. Usama Issa & Muwaffaq Alqurashi & Ibrahim Salama, 2021. "Qualitative Analysis of Risks Affecting the Delivery of Land Surveying Project Activities," Sustainability, MDPI, vol. 13(22), pages 1-20, November.
    9. Robert Osei-Kyei & Albert P. C. Chan & Yao Yu & Chuan Chen & Yongjian Ke & Bashir Tijani, 2019. "Social Responsibility Initiatives for Public-Private Partnership Projects: A Comparative Study between China and Ghana," Sustainability, MDPI, vol. 11(5), pages 1-14, March.
    10. Usman Ahmad & Yusnidah Ibrahim & Mohd Sobri Minai, 2017. "Public Private Partnership in Malaysia: The Differences in Perceptions on the Criticality of Risk Factors and Allocation of Risks between the Private and Public Sectors," International Review of Management and Marketing, Econjournals, vol. 7(2), pages 138-150.
    11. Zhao, Zhen-Yu & Zuo, Jian & Zillante, George, 2013. "Factors influencing the success of BOT power plant projects in China: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 446-453.
    12. Babatunde, Solomon Olusola & Perera, Srinath, 2017. "Analysis of traffic revenue risk factors in BOT road projects in developing countries," Transport Policy, Elsevier, vol. 56(C), pages 41-49.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:conmgt:v:23:y:2005:i:4:p:431-441. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RCME20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.