Large public infrastructure projects, such as roads, railways, power stations, dams, bridges and tunnels, have huge importance for a country’s economic development and they typically involve huge amounts of human, physical and financial resources. Such projects were used to be funded primarily by governments. However, governments today are increasingly finding themselves either unwilling or unable to finance the growing number of new infrastructure activities. Instead, private companies are often empowered by governments to build and operate many large projects under the so-called BOT (Build-Operate-Transfer) schemes.
In recent years, governments have been increasingly adopting Build-Operate-Transfer contracts for large infrastructure projects. Our Group involved is such projects, which are exceedingly complex from both a financial and a legal point of view, as they require an extended period of time to develop and construct. The Build-Operate-Transfer approach appears to be a useful possible alternative to the conventional financing and operation of infrastructure projects in developing countries.