RISKS IN BUILD, OPERATE AND TRANSFER (BOT) PROJECTS IN NIGERIA
1I.Y.Mohammed, 2K. Bala and 3S.U. Kunya
1&3Building Programme, School of Environmental Technology
Abubakar Tafawa Balewa University Bauchi, Nigeria
2Department of Building, Ahmadu Bello University, Zaria
ABSTRACT
One of the newest financial schemes for environmental projects is the Build, Operate, and Transfer (BOT) concept, which is being used increasingly worldwide as a project delivery system by which governments obtain the infrastructure projects by private sector after a concession period free of charge. In the Nigerian environment up to now, promoters and investors have had many fears toward declared projects. This study aims to investigate the potential for implementing the BOT system in the Nigerian environment. This can be achieved by giving a clear view of BOT and of its problems, risk areas, and features, pertaining to the Nigerian environment, in order to maximize the benefits and minimize the risks as much as possible. The collected data was analyzed based on actual implementation in Nigeria. This involved the following:1 An overview of the critical success factors in order to achieve a BOT project; 2 an analysis of results obtained from questionnaires seeking to determine the possibility of occurrence of the different risk factors in the Nigerian environment, and their ranking; 3 a comparison between the questionnaire results and the actual risks from requests for proposal of locally advertised projects; and 4 a determination of the missed critical success factors in the Nigerian environment. The main conclusion of this study is that three critical success factors are essential for the success of BOT projects in Nigeria: 1 Picking the right project; 2 competitive financial proposal; and 3 special features of bid.
Keywords: Nigeria; Build/operate/transfer; Risk management; Project management; Bids; Financial management.