BOT and OMT contracts for infrastructure in developing countries

• Main Author: McCarthy, Sean Cormac
• Published: University of Birmingham 1991
• Subjects: 624
• Online Access: http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.633227

This thesis is concerned with the contractual arrangements for infrastructure projects in developing countries associated with: - Build-Operate-Transfer (EOT) projects, - Operation and Maintenance (O&M) contracts and - Training contracts for operation and maintenance. The focus is placed on four sectors of infrastructure namely roads, power, water and buildings. In the literature review the nature of infrastructure projects in developing countries and the associated institutional problems are considered. The literature on topics of EOT, O&M contracts and Training contracts is surveyed. Under the EOT approach, a concession is granted by the client for the finance, design, construction and operation of a piece of infrastructure for a fixed period at the end of which the asset is transferred free of charge to the client. This thesis looks at the contracts, the corporate structure, the risks, the conflicts of interest and the advantages and disadvantages of the EOT model. A fundamental analysis of O&M contracts is then presented with the aim of providing guidance for the production of O&M contract documents. Good principles of instruction are identified and applied to the production of a draft training contract for operation and maintenance.