Examining the Contractual Methods and Patterns of Financing Infrastructure Projects with Emphasis on Build, Operation, Transfer Contracts

Document Type : Original Article

Authors

1 Ph.D. in oil and gas Law, university of Tehran, Tehran, Iran

2 Ph.D. in International Law, Public Law, Department of International Law, faculty of law, science and research branch, Islamic azad university, Tehran, iran

Abstract

In infrastructure projects, the government can solve the problem of financing projects by using its internal resources and direct costs or by concluding contracts that are accompanied by financing in addition to the implementation of the project. This article tries to supply different types of these contracts including Construction, Operation and Transfer (BOT), Buyback, Joint Venture and Engineering, Procurement, Construction Finance (EPCF) with emphasis on BOT contracts since these contracts are becoming increasingly important due to the difficulties of developing countries in financing projects using government direct costs. The results of this article indicate that in each of the infrastructure projects, a specific type of these contracts may be applied and none of these methods are weak or strong on their own. The financing method which can provide the interests of the contact parties is variable depending on the nature of the project or intended pattern and the political and economic conditions ruling the host country. BOT's method is increasing in developing and financing infrastructure projects of developing countries which are in dire need of financing projects. It should be noted that this article is written in a descriptive-analytical manner.

Keywords

References

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