15 Selecting the Best Public–Private Partnership Contract by Using the Fuzzy Method
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such developments are financially and technically complex, in addition to the requirements for superior professionals and consultants, as well as the enlarging expenses
of consumers during the operating period and the conflict between the private and
public sector profits.
15.3 Build-Own-Operate-Transfer (BOOT)
Build-Own-Operate-Transfer, known as BOOT, has many suitable factors that enable
it to be an efficient approach used for project delivery by governments. It includes
an established political structure, expectable and verified legal system, government support for a project that will benefit the community, long term petition,
constrained opposition, rational revenues, beneficial cash flows, and foreseeable risk
circumstances.
Build-Own-Operate-Transfer can be defined as a structure and type of concession
established between the public sector and private sector where a certain portion of an
infrastructure project, such as water, transportation, power, and telecom industries,
are designed, built, owned and operated. In this structure, the concession grants
the right to obtain profits from the project within a given time period of about 15–
25 years, and shifts the ownership through a single establishment or association
(BOOT provider) to the public sector afterwards (Arndt 1999). The income obtained
can be dependent on various measures, which are efficiently two-part dues such as a
fixed rate to the unit rate or the “Take-or-pay” agreements.
Participants in the BOOT methodology, which include the government, the
investors, the contractor, the operator, the SPC (special purpose company) and the
benefactors, are all required to minimize the investment expenses as well as the
government’s role in building, operating, and maintaining the infrastructure developments. Hence, this not only creates job opportunities for unemployed citizens, but
also a liable environment for adequate and consistent quality, providing associates,
as well as proposing advanced and alternative technology.
Build-Own-Operate-Transfer can be a beneficial approach for both the public and
private sectors. Some advantages of this approach include the shared risks where
construction and long-term operating risks are shifted to the BOOT operators, in
addition to the various participants who are also involved in such developments.
Moreover, through the incorporation of this method, project inevitability and initial
revenue salvaging are possible and there is prominent liability for asset design. Correspondingly, BOOT allows operators to expand their expertise and knowledge on
project management through experience. This methodology also involves intense
financial enticements for the operator, reduced budgets of company constructing
matters, construction and service delivery as a result of recovered expenditures, and
finally, BOOT promotes extreme modernization allowing for the most competent
designs.
Disadvantages are also associated with the BOOT approach, which include a larger
budget for the end user as a result of the complete financial liability and continuing
145
such developments are financially and technically complex, in addition to the requirements for superior professionals and consultants, as well as the enlarging expenses
of consumers during the operating period and the conflict between the private and
public sector profits.
15.3 Build-Own-Operate-Transfer (BOOT)
Build-Own-Operate-Transfer, known as BOOT, has many suitable factors that enable
it to be an efficient approach used for project delivery by governments. It includes
an established political structure, expectable and verified legal system, government support for a project that will benefit the community, long term petition,
constrained opposition, rational revenues, beneficial cash flows, and foreseeable risk
circumstances.
Build-Own-Operate-Transfer can be defined as a structure and type of concession
established between the public sector and private sector where a certain portion of an
infrastructure project, such as water, transportation, power, and telecom industries,
are designed, built, owned and operated. In this structure, the concession grants
the right to obtain profits from the project within a given time period of about 15–
25 years, and shifts the ownership through a single establishment or association
(BOOT provider) to the public sector afterwards (Arndt 1999). The income obtained
can be dependent on various measures, which are efficiently two-part dues such as a
fixed rate to the unit rate or the “Take-or-pay” agreements.
Participants in the BOOT methodology, which include the government, the
investors, the contractor, the operator, the SPC (special purpose company) and the
benefactors, are all required to minimize the investment expenses as well as the
government’s role in building, operating, and maintaining the infrastructure developments. Hence, this not only creates job opportunities for unemployed citizens, but
also a liable environment for adequate and consistent quality, providing associates,
as well as proposing advanced and alternative technology.
Build-Own-Operate-Transfer can be a beneficial approach for both the public and
private sectors. Some advantages of this approach include the shared risks where
construction and long-term operating risks are shifted to the BOOT operators, in
addition to the various participants who are also involved in such developments.
Moreover, through the incorporation of this method, project inevitability and initial
revenue salvaging are possible and there is prominent liability for asset design. Correspondingly, BOOT allows operators to expand their expertise and knowledge on
project management through experience. This methodology also involves intense
financial enticements for the operator, reduced budgets of company constructing
matters, construction and service delivery as a result of recovered expenditures, and
finally, BOOT promotes extreme modernization allowing for the most competent
designs.
Disadvantages are also associated with the BOOT approach, which include a larger
budget for the end user as a result of the complete financial liability and continuing