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Phases of A BOT Project Prepared By :Afaf Bu-khawa Course title: Technology Implementation,MGT 620
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Identification Identify project Define Form of Financing Preliminary Feasibility Study Assign Project Manager and Team Government Decision
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Government Preparation for Tendering Procurement Procedure Prequalification Project Agreement Tender documents Bid Evaluation Criteria
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Sponsor’s Preparation to Bid Form consortium/ Possibly Project Company Feasibility Study Identification of Potential Partnership Submit Bid package
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Selection Evaluate Bids Clarifications / Adjustments Project Award
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Development Form Project Company Equity contributions Loan Agreements Financial Closing Construction Contract Supply contract Off-take Contract
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Cont…. Insurance Contract
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Implementation CCCConstruct Facility and Install Equipment TTTTesting AAAAcceptance TTTTechnology Transfer and Capability Building EEEEvaluation
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Operation O&M During the concession Period Inspection Training Technology Transfer and Capability Building
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Transfer Transfer Procedure
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Some Criteria For a Successful Application of the BOT Concept
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The Project Financially sound Feasible and Affordable The country Risks must be Manageable Strong government support Project must rank high
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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
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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
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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
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