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The built-transfer and operate (BOT) toll model has been a common approach for highway construction in India. Due to large amount of investment, many stakeholders and long concession period, Indian BOT toll roads become susceptible to different risks. Risk assessment is one of the essential and difficult steps of risk management that enables professionals to quantify and analyze the risks that may hamper the BOT toll project performance in terms of cost, quality, safety and time. The purpose of this study is to identify and assess the risk factors by the fuzzy probabilistic model.

The comprehensive literature review has been carried out for identification of Indian BOT toll roads projects' risk factors. A structured questionnaire was prepared which was then filled by contractors, government officers, academicians, project managers and consultants. For risk assessment, a systematic quantitative-based fuzzy probabilistic model is proposed with the help of lab-view, as a risk assessment technique to simulate the impreciseness of human judgment and to improve the assessment accuracy.

The risk assessment is one of the difficult tasks because BOT toll roads have complex structure. In this study, total 71 risks have been identified and categorized under 14 risk factors on a basis of case studies of Indian toll roads and literature review. All risks have been assessed by the fuzzy probabilistic model by lab-view. The land acquisition is the most crucial risk of BOT toll roads project which is subsequently followed by construction time and cost over-run. Also, Indian BOT toll roads are facing the traffic shortfalls critically, which became a reason toward declination trend for investment in BOT toll projects by the private players. Other risks like political risks, contractual and social risk badly are affecting the project performance. Early risk identification and assessment can be beneficial for the project, which is required to prepare the risk response strategy before the project commencement.

This study throws light on comprehensive risk assessment and framework modeling of the risk assessment for the BOT toll roads project in India. This comprehensive risk assessor model can be used for BOT toll roads in Indian scenario for prioritization of the critical risk. It is important for the public and private sectors to establish an effective risk assessor model for public–private partnership (PPP) projects to achieve win-win condition for both.

The study analyzes significant parameters defining the credit worthiness, economic viability and managerial efficiency of special purpose vehicles (SPVs) of infrastructure development firms engaged in the execution of road projects under PPP model in India.

The study is based on a comprehensive review of credit rating reports of major rating agencies. In particular, 18 special purpose vehicles (13 BOT-toll–based and 5 BOT-annuity–based road projects) during the period 2010–2019 were considered to conduct a comparative analysis of their rating progression. Considering both financial as well as nonfinancial parameters, their segregation was done on the basis of strengths, constraints and key rating sensitivities influencing the ratings of SPVs involved in road projects under PPP model.

Promoters' credibility emerged as an important factor affecting PPP credit ratings. Other prominent factors included nature of stretch and regulatory terms and conditions and the project's potential to generate cash flows. Inability of PPP projects to generate the projected levels of toll collections was a major constraint and hampered ratings over time. Growth in traffic was a key sensitive area in a toll-based project. Interestingly, despite the fixed nature of revenues, BOT (annuity) projects were impacted by rating changes.

Fewer sample projects (for which the data were available) was a constraint. Future research could consider larger data sets to provide deeper insights. An examination of credit rating parameters using rating reports of projects in other developing nations could provide meaningful implications. The findings of this research however cannot be undermined as the study bridges a gap in existing literature pertaining to the examination of PPP model from a credit rating perspective.

This study would guide project developers, government agencies and awarding agencies of PPP road projects to anticipate the challenges and take adequate steps to mitigate them.

Research in the area of PPP projects is skewed toward risk assessment with respect to financial parameters. The present study emphasizes the rating framework of SPVs. Comprehensive examination of factors affecting project ratings in the form of projects' strengths, constraints and sensitivities would provide inputs to academics and researchers.

The Built Operate Transfer (BOT) model has been increasingly used in transportation investments in Vietnam. However, there is still an inadequacy of risk management applications in these projects and lack of research in this area. The study aims to improve the success of projects implemented through the BOT model in Vietnam.

The study followed a sequential design including interviews and a questionnaire survey to investigate the perception of stakeholders from public and private sector regarding the probability of occurrence and the severity of impact of risks in BOT transportation projects in Vietnam. Quantitative data from the survey was subjected to descriptive and inferential statistics to explore the priority of risks as well as the differences in the perception between the public and private sectors.

The results showed that the top five most significant risks in BOT transportation projects in Vietnam are: (1) problems with land acquisition and compensation, (2) inappropriate location of toll booths, (3) public resistance to pay, (4) high toll rate and (5) lack of cash flow. With the exception of “lack of cash flow,” there were no statistically significant differences in the rankings of individual risks between the public and private sector. In addition, there is a significant positive correlation in the overall rankings of all risks for both sectors.

This study contributes to the body of knowledge by exploring the probability of occurrence and the severity of the impact of risks in BOT transportation projects in a developing country like Vietnam which has not been extensively explored yet. Second, it provides an insight into the perception of stakeholders from the public and private sector regarding the level of risks which is very useful for potential stakeholders in making decisions when they intend to participate in such partnerships. Third, it enables the Vietnamese government to establish suitable policies related to such projects. These contributions are very important in improving risk management in PPPs in developing countries.

This case is based on the IPO of the first Infrastructure Investment Trust (InvIT) in India that was based on a portfolio of operating toll roads. InvIT enabled the construction company, which was also the sole equity investor, to release part of its equity to future toll road investments. The case describes the structure and functioning of the InvIT. It requires participants to assess its future potential for providing long term financing to not only toll roads but also other infrastructure projects.

The purpose of this paper is to determine the fundamental factors influencing the equity share in build‐operate‐transfer (BOT) investments in relation to the project risk profile.

The relationships between risk factors and equity participation into the capital structure of a BOT contract are examined using regression analysis of a dataset of toll road projects.

Results suggest that the inflation rate, the size of the investment, the construction period, the solidity of the vehicle company, and the organizational structure of the project are significant variables of the equity portion of financing.

The analysis may support project promoters by providing better understanding of the factors that might facilitate high debt leverages and by providing lending institutions with valuable information to integrate the method of determining the appropriate debt resources to be injected into a BOT project.

The paper contributes towards growing the body of knowledge regarding the way public‐private partnership initiatives are carried over and helps refine the capital structures of BOT projects.

The purpose of this paper is to identify the problems faced by banks, lenders, financial institutions, public authority, developers and concessionaires in course of financing of public–private partnership (PPP) road projects. Subsequently, the reasons that contribute to these problems were analyzed to come up with recommendations for mitigation of these problems.

The methodology adopted is based on identification of financing problems and the reasons thereof, from a systematic and critical review of literature. Financing details including problems faced and reasons behind were extracted from details of one port, one airport and one road project. Data pertaining to financing of PPP road projects have been collected for completed (five projects) as well as projects under implementation (five projects) during a time interval of four months, starting from December 2018 to March 2019. The chosen three projects for case studies were executed in airport project at Kolkata in four years, offshore container terminal at Mumbai port in six years and Tuni Ankapali road project in three years. This period attains importance, as simultaneous progressive development and innovation in the PPP mode of project execution was taking place rapidly.

The commercial banks in India dominate in providing debt to the PPP infrastructure projects, especially in the road sector. The non-banking financial companies and other intermediaries were still in their infancy then, and a corporate bond market was growing steadily, though slowly. Financing problems faced by the developers resulted in unwarranted time and cost overruns emanating from delay in land acquisition and grant of approvals, with these being the two major barriers to private sector participation. Even schedule overrun finally resulted in increased construction and financing cost.

Demand for upgradation, building and expansion of transportation infrastructure (roads) exists to keep pace with economic development. Problems like lack of a developed market for financing, inadequate institutional capacity, lack of personnel having domain expertise and absence of exclusive legislation to govern the implementation of PPP road projects are encountered by the sponsors and developers. Delay in land acquisition and environment clearance inhibits any decisive action by the lenders and investors, as these two are integrally linked to the decisions to be taken with respect to the financing of projects. Investors and bankers are generally apprehensive of their investment getting locked in or ending up as non-performing assets. Identification and proposed mitigation of these problems may likely smoothen the rough edges for the financing of projects, resulting in smoother implementation.

Host governments often provide guarantees in build‐operate‐transfer (BOT) infrastructure projects to attract private sector investors. Problems arise because the governments often do not know the full extent of contingent liabilities when issuing guarantees, and because they account and record guarantee costs only when guarantees come due. This paper discusses the guarantees' financial impact from the perspectives of the government and the project sponsor. A typical Indonesian BOT toll road project is taken as the case study. Stochastic simulation using Latin Hypercube technique is applied on the cash flow model with and without guarantees. Several types of guarantees including minimum revenue guarantee, maximum interest rate guarantee, debt guarantee, tariff guarantee and minimum traffic guarantee are discussed. Simulation results reveal that guarantees can reduce risk but are not free of cost. If compared with equivalent subsidies, however, some guarantees can be more effective in lessening the extent of project risk.

Despite the fact that extensive studies on public-private partnerships have focused on risk identification and classification, research still lacks concentration on studying the latent structure of risks in build operate transfer (BOT) transportation projects, especially in developing countries. The research was carried out in Vietnam and this paper aims to explore the underlying relationships among risks in the context of BOT transportation projects.

A questionnaire survey was conducted to investigate the perception of stakeholders regarding the probability of occurrence and the severity of the impact of risks related to BOT transportation projects. Factor analysis was performed based on a total of 40 risks.

Seven risk groups were formed as a result of factor analysis, namely, “projects’ viability and political-regulatory risks”, “macroeconomic risks”, “projects’ feasibility study and market risks”, “financial risks”, “organization/coordination and force majeure risks”, “tolling, contractual, approvals risks” and “media and land expropriation risks”.

The research contributes to the current body of knowledge by providing deep insight into the structure of risks in BOT transportation projects in Vietnam through exploring the underlying relationships among risks, to form a latent risk structure from practical viewpoints. The findings are beneficial for involved stakeholders and policymakers to set up and propose suitable management strategies and related policies.

The study aims to identify and rank the critical success factors (CSFs) for BOT projects in India.

The study was conducted based on an extensive literature review and focus group discussions. Through structured questionnaire, a survey was conducted with executives from leading construction, consultancy and government organizations. A total of 150 questionnaires were sent out of which 60 responses were received. Analytical hierarchy process method was used to analyze the data.

Concession agreement, short-construction period, selection procedure of concessionaire, sufficient long-term demand and sufficient net cash inflow emerged as the top five factors critical for the success of the BOT projects in India.

The identified CSFs should influence the policy development towards BOT projects and are expected to enhance the success rate of these projects.

The study has made much-needed contribution to the extant literature on BOT projects. The findings would be valuable in assisting government (owner) and private participants to have a better understanding of the critical factors leading to success of these projects. The results from the current study are crucial as not many studies have been conducted in India as compared to China and West.