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Paramanathan Sandran, PhD, MBA
Paramanathan Sandran, PhD, MBA
A seasoned expert with a highly successful career in consulting, strategic planning, proficient negotiations, and the successful implementation of pivotal Public-Private infrastructure projects.
Published Feb 28, 2024
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In the implementation of infrastructure and large-scale projects, various models are employed to facilitate construction, operation, and eventual ownership transfer. Three prominent models are commonly utilized: Build Operate Own (BOO), Build Operate Transfer (BOT), and Build Lease Maintain and Transfer (BLMT). Governments often opt for these models to achieve their infrastructure objectives, aiming to improve efficiency in managing funds and services for users. Each model presents distinct advantages and considerations for stakeholders involved. Let's delve into the typical characteristics of these models:
Each model presents distinct advantages and considerations, contingent upon the project's nature, financial circ*mstances, and stakeholders' risk tolerance. BOO grants the project company long-term control and revenue generation but demands significant financial investment and risk. Conversely, BOT and BLMT models facilitate private sector participation in infrastructure development, transferring ownership to the government or client after a specified period, thereby mitigating long-term investor risk. Understanding these nuances is vital for informed decision-making in infrastructure projects, as one size does not fit all. Tailoring each model to specific project or industry requirements may be necessary. In the next series, we will dive into the pros and cons in further detail.
#PublicPrivatePartnership #PPP #InfrastructureDevelopment #BOO #BOT #BLMT
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Gaya Ulak
Contract Management in Civil Engineering
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Well said
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