Bot a Common Tyoe of Contract Between Government and Organiazation
Rami Alhomsi
{ B.O.T contract }
DR. Omar Amoudi
Damascus University
Introduction: Definition:
B.O.T { Build →Operate→ Transfer } , means that government give license to an investor from private sector to build -on his finance- an infrastructure project , and to operate it so all profits comeback to this investor , but for a limited period (about 10 -40) years , after this period the project possessor and profits transfer to the government .
Theoretical background:
When/Why B.O.T is used? when the government want , it can be … may the government go to this kind of contracts when it has necessary projects but no finance for it , so it contract with an investor to build it , because governments look and plan for a long period of time .
Advantages : the benefit backs from using technical expertise and the knowledge of construction managements , many new technologic issues will transfer to the country , in addition of practice employees on modern techniques and developed sciences of managements , so it helps country to exist a base of practiced people . also it increase the productivity competence of the infrastructure projects when developed technology is used . and improve transfer services and all relationships with charging/emptying , also improve services of ports supply the needed finance to build which the government should fetch it . throw all construction risks for projects executers who have perfect qualifications specially in management skills and risk management .
Disadvantages :
-In spite of advantages which countries have from B.O.T , there are many disadvantages which should be studied before make a contract by this type -one of these disadvantages , when investors overestimate in evaluating the investment costs for the projects , and they may do that to require high prices from the users later of the projects , to have more profit -sometimes operating some projects may cause damages to the environment ,
{ B.O.T contract }
DR. Omar Amoudi
Damascus University
Introduction: Definition:
B.O.T { Build →Operate→ Transfer } , means that government give license to an investor from private sector to build -on his finance- an infrastructure project , and to operate it so all profits comeback to this investor , but for a limited period (about 10 -40) years , after this period the project possessor and profits transfer to the government .
Theoretical background:
When/Why B.O.T is used? when the government want , it can be … may the government go to this kind of contracts when it has necessary projects but no finance for it , so it contract with an investor to build it , because governments look and plan for a long period of time .
Advantages : the benefit backs from using technical expertise and the knowledge of construction managements , many new technologic issues will transfer to the country , in addition of practice employees on modern techniques and developed sciences of managements , so it helps country to exist a base of practiced people . also it increase the productivity competence of the infrastructure projects when developed technology is used . and improve transfer services and all relationships with charging/emptying , also improve services of ports supply the needed finance to build which the government should fetch it . throw all construction risks for projects executers who have perfect qualifications specially in management skills and risk management .
Disadvantages :
-In spite of advantages which countries have from B.O.T , there are many disadvantages which should be studied before make a contract by this type -one of these disadvantages , when investors overestimate in evaluating the investment costs for the projects , and they may do that to require high prices from the users later of the projects , to have more profit -sometimes operating some projects may cause damages to the environment ,
References: : Wikipedia (website) How to be a construction management (book) Suria aljadida (old newspaper -1932 ) Companies ' contracts and ways of tackling (book) ASCE (website)