IDEAS home Printed from https://ideas.repec.org/p/eab/microe/21978.html
   My bibliography  Save this paper

Build-Operate-Transfer (BOT) Arrangements : The Experience and Policy Challenges

Author

Listed:
  • Adora Navarro

    (PIDS)

Abstract

A look into projects under the Philippine program of public-private sector partnerships during the period 1999-2003 showed that participation of the private sector has been declining. This paper postulates that some of the reasons for dwindling investor appetite are related to contract design and implementation. It examines the nature of BOT-type contracts, their design and content and conducts a case study of a challenging BOT-type contract and identifies issues and problems faced by the government and private investors in implementing the contract. Finally the paper recommends that further amendments to the present BOT Law and its IRR must be explored to identify ways in which contractual incompleteness may be minimized. A thorough examination of the integration of law and economics in contract design as future research was also suggested.

Suggested Citation

  • Adora Navarro, 2005. "Build-Operate-Transfer (BOT) Arrangements : The Experience and Policy Challenges," Microeconomics Working Papers 21978, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:microe:21978
    as

    Download full text from publisher

    File URL: http://www.eaber.org/node/21978
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jim Leitzel, 1989. "Damage Measures and Incomplete Contracts," RAND Journal of Economics, The RAND Corporation, vol. 20(1), pages 92-101, Spring.
    2. Scott E. Masten & Stéphane Saussier, 2000. "Econometrics of Contracts : an Assessment of Developments in the Empirical Literature on Contracting," Revue d'Économie Industrielle, Programme National Persée, vol. 92(1), pages 215-236.
    3. Llanto, Gilberto M., 2002. "Infrastructure Development: Experience and Policy Options for the Future," Discussion Papers DP 2002-26, Philippine Institute for Development Studies.
    4. Jean Tirole, 1999. "Incomplete Contracts: Where Do We Stand?," Econometrica, Econometric Society, vol. 67(4), pages 741-782, July.
    5. Renato Reside, Jr., 1999. "Estimating the Philippine Government's Exposure to the Risk from Contingent Liabilities in Infrastructure Projects," UP School of Economics Discussion Papers 199914, University of the Philippines School of Economics.
    6. Ilya Segal, 1999. "Complexity and Renegotiation: A Foundation for Incomplete Contracts," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 66(1), pages 57-82.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Navarro, Adora, 2005. "Build-Operate-Transfer (BOT) Arrangements: The Experience and Policy Challenges," Discussion Papers DP 2005-01, Philippine Institute for Development Studies.
    2. Nabil I. Al-Najjar & Luca Anderlini & Leonardo Felli, 2006. "Undescribable Events," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 73(4), pages 849-868.
    3. Sharon Novak & Scott Stern, 2009. "Complementarity Among Vertical Integration Decisions: Evidence from Automobile Product Development," Management Science, INFORMS, vol. 55(2), pages 311-332, February.
    4. Anderlini, Luca & Felli, Leonardo, 2004. "Bounded rationality and incomplete contracts," Research in Economics, Elsevier, vol. 58(1), pages 3-30, March.
    5. Maskin, Eric, 2002. "On indescribable contingencies and incomplete contracts," European Economic Review, Elsevier, vol. 46(4-5), pages 725-733, May.
    6. Oriol Carbonell-Nicolau & Diego Comin, 2005. "Testing Out Contractual Incompleteness: Evidence from Soccer," Departmental Working Papers 200501, Rutgers University, Department of Economics.
    7. Andrew Postlewaite, 2007. "Courts of Law and Unforeseen Contingencies," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 23(3), pages 662-684, October.
    8. Helm, Roland & Kloyer, Martin, 2004. "Controlling contractual exchange risks in R&D interfirm cooperation: an empirical study," Research Policy, Elsevier, vol. 33(8), pages 1103-1122, October.
    9. Philippe Aghion & Mathias Dewatripont & Patrick Rey, 2004. "Transferable Control," Journal of the European Economic Association, MIT Press, vol. 2(1), pages 115-138, March.
    10. Dilip Mookherjee, 2006. "Decentralization, Hierarchies, and Incentives: A Mechanism Design Perspective," Journal of Economic Literature, American Economic Association, vol. 44(2), pages 367-390, June.
    11. Tugba GURCAYLILAR YENIDOGAN & Alp YENIDOGAN, 2013. "Sozlesme Tasarimi: Tur Operatoru-Otel Kontenjan Sozlesmeleri," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 13(3), pages 393-403.
    12. Evelyn Korn & Stephan Meisenzahl, 2009. "Contracting still matters! Or: How to design a letter of intent," MAGKS Papers on Economics 200909, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    13. Susheng Wang, 2024. "Incomplete contracts with disparity, uncertainty, information and incentives," Theory and Decision, Springer, vol. 97(2), pages 347-389, September.
    14. Nikolaev, Valeri V., 2018. "Scope for renegotiation in private debt contracts," Journal of Accounting and Economics, Elsevier, vol. 65(2), pages 270-301.
    15. Andreas Roider, 2006. "Delegation of Authority as an Optimal (In)Complete Contract," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 162(3), pages 391-411, September.
    16. Fares, M’hand, 2005. "Quels fondements à l’incomplétude des contrats?," L'Actualité Economique, Société Canadienne de Science Economique, vol. 81(3), pages 535-555, Septembre.
    17. Toru Suzuki, 2020. "Efficiently Imprecise Contracts," Working Paper Series 2020/07, Economics Discipline Group, UTS Business School, University of Technology, Sydney.
    18. Liliana Basile & Raffaele Trani, 2008. "Incomplete Contracts Modelling," Metroeconomica, Wiley Blackwell, vol. 59(3), pages 347-370, July.
    19. Tassel, Eric Van, 2004. "Household bargaining and microfinance," Journal of Development Economics, Elsevier, vol. 74(2), pages 449-468, August.
    20. Yeon-Koo Che & József Sákovics, 2004. "A Dynamic Theory of Holdup," Econometrica, Econometric Society, vol. 72(4), pages 1063-1103, July.

    More about this item

    Keywords

    BOT projects; public-private sector partnerships; Infrastructure Investments;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eab:microe:21978. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Shiro Armstrong (email available below). General contact details of provider: https://edirc.repec.org/data/eaberau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.