1. The Government Role in BOTBy
Reja AlSaeed

2. a. Financing b. Designing c. Construction d. Operating
Overview
a.    Financing
b.    Designing
c.    Construction
d.    Operating
Sponsor Company
The Government has to play active role especially in pre-construction and pre-investment phase

3. The governments should:
1.    Approve the BOT project
2.    Identify suitable sectors and project.
3.    Decide and manage the procurement process
4.    Define the criteria for selection
5.    Involved in the drafting of the project agreement
6.    In the implementation, the government might:
7. Get ready to receive it at the end.

4. BOT strategy at the country level
BOT strategy has to meet the countries need and situation.
  Majority of BOT have been implemented in the more industrialized countries.
Our countries need to attract foreign investors

5. The promotion of private sector participation
Convince them of government firm
commitment to BOT infrastructure
Disseminate information to public
opinion and get their gain.
Insure the support of interested
group (labor unions and forth)
commitment

6. The legal Frame Work for BOT strategy
1.   The legal framework as a key element in the investor’s appraisal of a BOT project
enforcement of contract, private ownership, security arrangement, taxes, remittance of foreign exchange, and profits.

7. 2. The basic legislative authority for awarding BOT project
3. Enabling public legislation
4. Adequate security Legislation
5.    Legislation to promote foreign investment
6.    Legal framework for BOT project agreements
7.    General Business legislation

8. Administrative Framework of BOT Project
Key words are credible and efficient administrative framework (no complicated bureaucratic procedures)
                    

9. Planning and Coordination
1.    Formulate the BOT policy
2.    Proposing legislation and administrative regulation.
3.    Setting up rules to coordinate administrative procedures
4.    Ensuring proper economic and financially analysis.
5.    Setting up a drafting model
Identify and prioritize BOT project

10. Administration of BOT project
1.    Economic analysis
2.    Market statistics and forecasts
3.    Feasibility studies.
4.    Preparation of facility design
5.    Drafting of legal documents
 To Avoid Delay
                    
1.    Setup one window system (one government office to deal with issues for the project company)
2.    State the permits and approval submittal date in the agreement
3.    Select the project team very carefully

11. BOT training Programs for administrative Personnel
They have to understand the whole concept of BOT very clearly.

12. Government incentive and other forms of support
Usually it varies depending on the following:
a.    Country risks
b.    Feasibility of the Project
c.     Country need
d.    Competitive position of the host country

13. Indirect Financial Support
1.    Tax incentives and concessions
2.    Land, access roads, transmission line and communications, and local labor.
3.    Ensuring building and raw materials
4.    Contribution to assets of project being replaces.
5.    Power purchase agreement
6.    Government guarantee and stand-by financing
7.    Loans and equity (Very few countries)
8.    Assurance of no competing project
9.    Completion and performance incentives (Signature bonus, Completion Bonus, Performance Bonus)
10.  Attractive risk-reward provision
11.  Commitment to conclude BOT project within a reasonable time.