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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    BOT system for the implementation of strategic projects

    Rocky
    Rocky
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    Posts : 267081
    Join date : 2012-12-21

    BOT system for the implementation of strategic projects Empty BOT system for the implementation of strategic projects

    Post by Rocky Tue 17 Jul 2018, 2:29 am

    BOT system for the implementation of strategic projects


    17/7/2018 12:00 am

    Mohammed Turki Al-Qaisi
    Build - Operate - Transfer / BOT (Build - Operate - Transfer / BOT) is a state - owned transfer of state - of - the - art systems for the implementation of mega projects such as the construction of airports, power plants, roads and bridges. A certain privilege (30 or 40 years) through which the cost is borne by the company in addition to the profits. At the end of the concession period, the company returns the assets of the project to the state and is in good condition to continue to operate without charge.
    The BOT system is an appropriate means of financing projects away from the state budget so that the investor bears the financial burdens and risks from the state, especially those countries that suffer from budget deficit to establish projects that need large sums.
    The BOT system provides many advantages, including the use of technical expertise in the management and operation of projects, especially with regard to the transfer of technology and the training of workers in the latest administrative means, leading to the development and improvement of the public sector.
    It also works to enhance the productive efficiency in the operation of projects using the latest means in addition to contributing to the improvement of transport services and extend the life of the facilities through permanent maintenance with the recognition of the advantages of the donor countries for excellence does not mean the absence of defects surrounding the operation of this system, Investors in estimating the investment costs of the projects and the objective of imposing high prices on the users of projects after completion. The operation of some projects may result in damage to environmental conditions and require Governments to develop environmental balance requirements. Some investors resort to outdated equipment or technology, which may not provide the necessary technical aspects. Some investors may also neglect to maintain projects as the concession period approaches.
    The BOT system passes through four basic stages. The first stage is the stage of obtaining the license or concession through an agreement between the State and the investor. The construction and construction stage is followed by a contract between the investor and one of the contracting companies, then the stage of project management and operation. The last stage of transfer of ownership to the State after the end of the concession period.
    The loans are granted only after checking the borrower's ability to borrow and enter the project, ownership of the land of the project, the possibility of transferring profits and stability of the exchange rate, the economic feasibility of the project, collateral and insurance in kind. Does the government guarantee payment directly or indirectly? Can the borrower, if the borrower fails to implement, manage the project as its manager? How can risk be distributed during different implementation stages? How can financial risks (low yield, exchange rate instability, forced pricing) be addressed How can political risks be reduced (nationalization, withdrawal of privilege, confiscation).
    The concessionaire may not issue any restrictive legislation to the concessionaire, the concession may not be terminated or canceled by the Government alone, and it has the right to collect fees On the use of the project and its use to cover costs.
    As for the obligations imposed on the investor, the construction of the project and its operation in accordance with agreed specifications and compliance with the conditions related to security and public morals and the preservation of the environment and the return of the project to the state without payment after the end of the concession period.
    In the event of a dispute between the parties with respect to the execution of the contract or with regard to rights and obligations, the date of delivery, etc., it is usually agreed not to resort to judicial bodies, both domestically and internationally. There are many risks and difficulties facing BOT projects such as the political risks of expropriation, nationalization, wars and ethnic unrest. In terms of economic risks, they are the damage caused to the investor by legislation or government decisions such as the risk of non-payment for the use of project services Or the risk of allowing similar projects to be established before the end of the concession period, and the risk of the government's failure to complete the contract, cancel the concession or change its terms.
    To address these risks, there was a need for guarantees provided by the Governments of donor countries through multi-system mechanisms for investment and credit guarantees, export guarantees and insurance companies
    Special. Al Qabas Economic Group

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