Paper Type |
: |
Research Paper |
Title |
: |
Risk Assessment of BOT Road Projects |
Country |
: |
India |
Authors |
: |
Engineer Rinaj Pathan, Prof. Dr. S. S. Pimplikar |
 |
: |
10.9790/1684-0534059  |
Abstract: To assess the risks involved in BOT by studying a specific case of BOT Road Project, To evaluate the
role of financial stability on the project and the subsequent effect on risks. To Study the individualistic approach
of the involved parties...
BOT has been one of the recent innovations in project finance. The Build-Operate-Transfer (BOT) scheme is a
limited recourse financing technique. Many have adopted this approach as an alternative to traditional public
financing for infrastructure development projects.
It examines the type of capital and debt in project financing. In addition, it examines the financial instruments
used in project financing. Due to lack of fund availability, government had taken decision to implement the
project of Major Bridge across river along with bypass route outside city through BOT. This BOTwas purely
based on concession period. Tender has specific clause which affects the rate of interest due to change in prime
lending rate issued by State bank of India. There is wide range of fluctuation in PLR from start of project &up
till now. So, concession period is changed according to that.
This paper mainly representing the risk of financing in operation period due to fluctuation in prime lending
rate..
Keywords: Bot, Cash Flow, Concession Period, Finance Risk, Plr, Ppp
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