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Build-Operate-Transfer (BOT) Arrangements : The Experience and Policy Challenges

Author

Listed:
  • Adora Navarro

    (PIDS)

Abstract

A look into projects under the Philippine program of public-private sector partnerships during the period 1999-2003 showed that participation of the private sector has been declining. This paper postulates that some of the reasons for dwindling investor appetite are related to contract design and implementation. It examines the nature of BOT-type contracts, their design and content and conducts a case study of a challenging BOT-type contract and identifies issues and problems faced by the government and private investors in implementing the contract. Finally the paper recommends that further amendments to the present BOT Law and its IRR must be explored to identify ways in which contractual incompleteness may be minimized. A thorough examination of the integration of law and economics in contract design as future research was also suggested.

Suggested Citation

  • Adora Navarro, 2005. "Build-Operate-Transfer (BOT) Arrangements : The Experience and Policy Challenges," Microeconomics Working Papers 21978, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:microe:21978
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    File URL: http://www.eaber.org/node/21978
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    References listed on IDEAS

    as
    1. Jim Leitzel, 1989. "Damage Measures and Incomplete Contracts," RAND Journal of Economics, The RAND Corporation, vol. 20(1), pages 92-101, Spring.
    2. Jean Tirole, 1999. "Incomplete Contracts: Where Do We Stand?," Econometrica, Econometric Society, vol. 67(4), pages 741-782, July.
    3. Scott E. Masten & Stéphane Saussier, 2000. "Econometrics of Contracts : an Assessment of Developments in the Empirical Literature on Contracting," Revue d'Économie Industrielle, Programme National Persée, vol. 92(1), pages 215-236.
    4. Ilya Segal, 1999. "Complexity and Renegotiation: A Foundation for Incomplete Contracts," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 66(1), pages 57-82.
    5. Llanto, Gilberto M., 2002. "Infrastructure Development: Experience and Policy Options for the Future," Discussion Papers DP 2002-26, Philippine Institute for Development Studies.
    6. Renato Reside, Jr., 1999. "Estimating the Philippine Government's Exposure to the Risk from Contingent Liabilities in Infrastructure Projects," UP School of Economics Discussion Papers 199914, University of the Philippines School of Economics.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

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    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law

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