2004˜The œjournal of structured financeRequires access

Observations on Project Structures for Privately Funded Infrastructure Projects

Rajan A. Thillai

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Abstract

Privately funded infrastructure projects (PFIPs) normally are financed on a project finance basis. The most common project formats that are used in PFIPs are build-operate-transfer (BOT), build-own-operate (BOO), and build-own-operate-transfer (BOOT). This article identifies the key differences among these formats in three different phases of the project: project development, project operation, and project termination. Successful project completion requires identifying an appropriate project structure that can match the project characteristics. Using empirical evidence, this article suggests appropriate project formats for different infrastructure projects depending on their individual characteristics.

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What this paper is about

Privately funded infrastructure projects (PFIPs) normally are financed on a project finance basis. The most common project formats that are used in PFIPs are build-operate-transfer (BOT), build-own-operate (BOO), and build-own-operate-transfer (BOOT). This article identifies the key differences among these formats in three different phases of the project: project development, project operation, and project termination. Successful project completion requires identifying an appropriate project structure that can match the project characteristics. Using empirical evidence, this article suggests appropriate project formats for different infrastructure projects depending on their individual characteristics.

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Available abstract

Privately funded infrastructure projects (PFIPs) normally are financed on a project finance basis. The most common project formats that are used in PFIPs are build-operate-transfer (BOT), build-own-operate (BOO), and build-own-operate-transfer (BOOT). This article identifies the key differences among these formats in three different phases of the project: project development, project operation, and project termination. Successful project completion requires identifying an appropriate project structure that can match the project characteristics. Using empirical evidence, this article suggests appropriate project formats for different infrastructure projects depending on their individual characteristics.

Key concepts: Project finance, Project sponsorship, Key (lock), Project management, Project charter, Project management triangle, Work breakdown structure, Project planning

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