A Review of Build-Operate-Transfer for Infrastructure Development: Some Lessons for Policy Reform

Author: 
Gilberto M. Llanto
Description: 
DISCUSSION PAPER SERIES NO. 2008-25
JEL codes: 
Organisation: 
Abstract: 
The Philippines has used the BOT law, as amended to motivate private sector provision of infrastructure. Using examples from selected BOT projects in the country, the paper pointed out key issues constraining the successful implementation of the BOT approach to infrastructure provision. It also indicated several factors that were instrumental in forging an effective publicprivate partnership in BOT projects. The paper pointed out the need to address various issues, starting from the legal framework to the level of responsibilities of the government institutions that are involved in the project cycle, i.e., from project entry level to implementation and completion. Improvements should be introduced at the policy, legal and institutional frameworks in order to improve the usefulness of this approach to infrastructure development.