Risks and Mitigation Measures in Build- Operate-Transfer Projects

Infrastructure investments are important in developing
countries, it will not only help to foster the economic growth of a nation, but it will also act as a platform in which new forms of partnership and collaboration can be developed mainly in East Asian countries. Since the last two decades, many infrastructure projects had been completed through build-operate-transfer (BOT) type of
procurement. The developments of BOT have attracted participation of local and foreign private sector investor to secure funding and to deliver projects on time, within the budget and to the required specifications. Private sectors are preferred by the government in East Asia to participate in BOT projects due to lack of public funding. The finding has resulted that the private sector or promoter
of the BOT projects is exposed to multiple risks which have been discussed in this paper. Effective risk management methods and goodmanagerial skills are required in ensuring the success of the project. The review indicated that mitigation measures should be employed by the promoter throughout the concession period and support from the host government is also required in ensuring the success of the
BOT project.