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Phases of A BOT Project. Prepared By :Afaf Bu-khawa Course title: Technology Implementation ,MGT 620. Identification. Identify project Define Form of Financing Preliminary Feasibility Study Assign Project Manager and Team Government Decision. Government Preparation for Tendering.
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Phases of A BOT Project Prepared By :Afaf Bu-khawa Course title: Technology Implementation ,MGT 620
Identification • Identify project • Define Form of Financing • Preliminary Feasibility Study • Assign Project Manager and Team • Government Decision
Government Preparation for Tendering • Procurement Procedure • Prequalification • Project Agreement • Tender documents • Bid Evaluation Criteria
Sponsor’s Preparation to Bid • Form consortium/ Possibly Project Company • Feasibility Study • Identification of Potential Partnership • Submit Bid package
Selection • Evaluate Bids • Clarifications / Adjustments • Project Award
Development • Form Project Company • Equity contributions • Loan Agreements • Financial Closing • Construction Contract • Supply contract • Off-take Contract
Cont…. • Insurance Contract
Implementation • Construct Facility and Install Equipment • Testing • Acceptance • Technology Transfer and Capability Building • Evaluation
Operation • O&M During the concession Period • Inspection • Training • Technology Transfer and Capability Building
Transfer Transfer Procedure
Some Criteria For a Successful Application of the BOT Concept
The Project Financially sound Feasible and Affordable • The country Risks must be Manageable • Strong government support • Project must rank high
The legal framework must be stable • The administrative framework must be efficient • The bidding procedure must be fair and transparent • BOT transaction should be structured ,to be within reasonable the time and cost
The sponsors must be experienced and reliable • The sponsors must have sufficient financial strength • The construction contractor must have sufficient experience and resources • The project risks must be allocated rationally among parties
The financial structure must provide the lenders adequate security • The currency, foreign exchange and inflation issues must be solved • The BOT contractual framework must be coordinate and reflect the basic economics • The public and the private sectors need to cooperate on a win-win basis