Risk Assesement of BOT Project

Abstract

The rising demand of infrastructure and meagre funds available with the government has allowed the BOT approach to be followed as the best possible option to resolve the transportation queries. Although, undertaking infrastructure work in India includes many risks and problems that are prevalent mainly because of differences in legal systems, market conditions, political scenario, culture. It is crucial for investors to identify and assess the critical risks expected to occur with investments in India‟s BOT infrastructure projects. In order to make sure that BOT project to be successful it is necessary to identify , access and manage the risks involved in the BOT project. It provides encouraging prospects to the foreign investor. The most common element of a BOT projects is that the concerned Govt. Authority of infrastructure projects gets the private sector engaged to a greater extent in the performance of certain operations previously handled by the public sector. This could range from design finance , construct , operate and maintain before finally transferring the facility to the concerned authority like PWD, NHAI in case of India .