18.8 Structuring a BOT Financing Package
18.8.1 Introduction
Structuring of a financing “package” for a BOT project is an interdisciplinary
exercise which is complex, and time consuming.
It must be understood that BOT projects are more financially rather than technically driven.
The three main factors in the packaging of a BOT project are momentum,
expertise and timing.
The structuring of a BOT package therefore is a combination of complex interactions taking place on the following issues at all times:
• Technical
• Financial
• Legal
• Organisational
• Political
Project
company
Host government
Export credit
guaranty agencies
Investment bankers
Legal counsel
Technical advisors
Construction consortium /
equipment suppliers
Operator
Insurers
Insurance
policies
Operating
Management
contract
Fixed price turnkey
construction contract
Advisors
Concession, agreement,
approvals, authorisations,
guarantees, possible equity,
loans, stand-by commitments
Passive Equity
Investors
Sponsors
Equity Investment
shareholders
agreement
Investment bankers
Legal counsel
Advisors
Investment bankers
Legal counsel
Equity
Investment
Deed of trust
Trustee
Lenders
Escrow agent
Escrow agreement
Long term
debt
Payments
Guarantee agreement
Guarantees
Fig. 18.2 Typical BOT management structure
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18 Infrastructure Markets and the Private Sector