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 CCCConstruct Facility and Install Equipment TTTTesting AAAAcceptance TTTTechnology Transfer and Capability Building EEE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