RISK MANAGEMENT OF B.O.T. (BUILT-OPERATE-TRANSFER) IN PHILIPPINES

Abstract

Driven by fiscal austerity and failure with the performance of state-provided infrastructure services, the Philippine government has turned to the private sector to build, operate, finance infrastructures in power, gas, water, transport, etc. But relative to this need, the private sectors as well as the government are exposed to risks inherent in large-scale development such as the BOT. This study will focus on the identification and the proposed mitigation of risks uniquely inherent in the Philippines as a country and its social economic system. Since the onset of various BOT variants in the country, foreign investors, sponsors, financial institutions and others continue to bid and confront the risks. This paper will investigate the components of the risks present and the appropriate mitigating measures die BOT participants undertook in BOT projects. This study will also determine the approach of both private and public sector in their assessment of risk in BOT projects.