Question
A government is looking to undertake a large
infrastructure project, such as the construction of a new highway. However, the government has limited financial resources and expertise in managing such projects. To overcome these challenges, the government is considering partnering with a private entity to design, build, finance, and operate the highway. Which type of Public-Private Partnership (PPP) model would be most appropriate for this project, considering the government's objectives and constraints?Solution
In a BOT model, the private partner is responsible for designing, building, financing, and operating the project for a specified period, after which ownership is transferred back to the government. This model aligns with the government's objectives of leveraging private sector expertise and financing while retaining ownership of the infrastructure asset.
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