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

Document Type : Original Article


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


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.


  • Eizadifar, Aliakbar, Kaviar, Hossein (2010), Legal and Jurisprudential Deliberation on Buyback Contract, Commercial Research Quarterly Journal, Issue No. 111, 143-54
  • Bastani, Alireza, “Economic Effects and Legal Platforms of Establishment of an Economic Group with Joint Interests (Joint Venture), Economic Journal, Monthly Journal for Examining the Economic Issues and Policies, issues 9 and 10
  • Bastani, Alireza, Rezaei, Javad (2008), “Economic Effects of Establishment of an Economic Group with Joint Interests by Emphasizing on Development of Joint Venture”, Office of Economic Studies
  • Tavassoli Jahromi, Manouchehr (2002), “BOT Contracts”, Journal of School of Law and Political Sciences, issue 58
  • Shiravi, Abdolhossein (2002), “BOT Contracts”, University of Tehran, College of Qom, Oil Engineering and Development Company
  • Shiravi, Abdolhossein (2001), “Reasons for Using BOT Contracts and the Role of Government in the Success of These Projects”, Journal of Higher Education Center of Qom, 3rd Year, issue 11
  • Saber, Mohammadreza (2010), “Buyback in Oil and Gas Upstream Sector”, Dadgostar Publications
  • Sadeghi, Javanmard, “Legal Aspects of Buyback Investment Contracts, Concept, Nature and Formalities of Conclusion”, Journal of Legal Researches
  • Sadeghi, Mohsen, “Review of International BOT Contracts”, Research Journal of Commerce
  • Farshadfar, Mohammadali (2011), “A Handbook of Contract Conclusion Using EPC Method”
  • Joseph A. Huse,(2002) Understanding and negotiating turnkey and EPC contracts, Second edition, Sweet & Maxwell,.p17.
  • Corene Crossin and Jessie Banfield, “Conflict and Project Finance: exploring options for better management of conflict risk”, Background paper, International Alert, London, UK, January 2006, p. 6.
  • Sullivan and Cromwell llp, “Project Finance Workshop: An Introduction to Project Finance for Oil, Gas and Pipelines”, April 25, 2007, p. 6.
  • Hossein Razavi, “Financing Oil and Gas Projects in Developing Countries, Finance & Development”, June 1996, p. 2