Practice briefing : Is BOT the best financing model to procure infrastructure projects? A case study of the Hong Kong-Shuhai-Macau Bridge

Abstract: Purpose – Several major infrastructure projects in the Hong Kong Special Administrative Region (HKSAR) have been delivered by the build-operate-transfer (BOT) model since the 1960s. Although the benefits of using BOT have been reported abundantly in the contemporary literature, some BOT projects were less successful than the others. This paper aims to find out why this is so and to explore whether BOT is the best financing model to procure major infrastructure projects. Design/methodology/approach – The benefits of BOT will first be reviewed. Some completed BOT projects in Hong Kong will be examined to ascertain how far the perceived benefits of BOT have been materialized in these projects. A highly profiled project, the Hong Kong-Zhuhai-Macau Bridge, which has long been promoted by the governments of the People's Republic of China, Macau Special Administrative Region and the HKSAR that BOT is the preferred financing model, but suddenly reverted back to the traditional financing model to be funded primarily by the three governments with public money instead, will be studied to explore the true value of the BOT financial model. Findings – Six main reasons for this radical change are derived from the analysis: shorter take-off time for the project; difference in legal systems causing difficulties in drafting BOT agreements; more government control on tolls; private sector uninterested due to unattractive economic package; avoid allegation of collusion between business and the governments; and a comfortable financial reserve possessed by the host governments. Originality/value – The findings from this paper are believed to provide a better understanding to the real benefits of BOT and the governments' main decision criteria in delivering major infrastructure projects.

Devenir plurilingue : la perspective des littératies multiples

Abstract - English Multiple literacies refers to reading, reading the world and self. This article proposes an understanding of reading that goes beyond its definition in psychology and applied linguistics. This longitudinal project is interested in a conceptualisation of what reading is, how it functions and what it produces in becoming multilingual. Reading is explored through the lens of an empirical study involving five female pupils from senior Kindergarten to Grade 3 observed and interviewed in relation to activities at school and at home. The study took place in Ottawa schools where French is the sole language of instruction. Reading in the context of multiple literacies is conceptualised to disrupt /deterritorialise and to be immanent, offering the potentiality to go beyond what is to what could be. Becoming multilingual is a continuous movement involving networks of rhizomatic connections and reading the world and self. Résumé - Francais Les littératies multiples se réfèrent à la lecture, la lecture du monde et la lecture de soi. Cet article propose une compréhension de la lecture qui dépasse sa définition usuelle en psychologie et en linguistique appliquée. Ce projet longitudinal porte sur la conceptualisation de la lecture, son fonctionnement et ce qu’elle produit dans le devenir plurilingue. La lecture est examinée selon l’optique d’une étude empirique durant laquelle cinq écolières du jardin d’enfants à la 3e année étaient observées et interviewées par rapport à des activités à l’école et à la maison. L’étude a eu lieu dans des écoles d’Ottawa dont la seule langue d’enseignement est le français. Dans le contexte des littératies multiples, la lecture est conceptualisée comme étant perturbatrice/déterritorialisante et immanente. Elle offre la potentialité d’aller au-delà de ce qui est vers ce qui pourrait être. Devenir plurilingue est un mouvement continu faisant appel à des réseaux de connexions rhizomatiques et à la lecture du monde et de soi.

A model for determining the optimal project life span and concession period of BOT projects

The concession agreement is the core feature of BOT projects, with the concession period being the most essential feature in determining the time span of the various rights, obligations and responsibilities of the government and concessionaire. Concession period design is therefore crucial for financial viability and determining the benefit/cost allocation between the host government and the concessionaire. However, while the concession period and project life span are essentially interdependent, most methods to date consider their determination as contiguous events that are determined exogenously. Moreover, these methods seldom consider the, often uncertain, social benefits and costs involved that are critical in defining, pricing and distributing benefits and costs between the various parties and evaluating potentially distributable cash flows. In this paper, we present the results of the first stage of a research project aimed at determining the optimal build-operate-transfer (BOT) project life span and concession period endogenously and interdependently by maximizing the combined benefits of stakeholders. Based on the estimation of the economic and social development involved, a negotiation space of the concession period interval is obtained, with its lower boundary creating the desired financial return for the private investors and its upper boundary ensuring the economic feasibility of the host government as well as the maximized welfare within the project life. The outcome of the new quantitative model is considered as a suitable basis for future field trials prior to implementation. The structure and details of the model are provided in the paper with Hong Kong tunnel project as a case study to demonstrate its detailed application. The basic contributions of the paper to the theory of construction procurement are that the project life span and concession period are determined jointly and the social benefits taken into account in the examination of project financial benefits. In practical terms, the model goes beyond the current practice of linear-process thinking and should enable engineering consultants to provide project information more rationally and accurately to BOT project bidders and increase the government's prospects of successfully entering into a contract with a concessionaire. This is expected to generate more negotiation space for the government and concessionaire in determining the major socioeconomic features of individual BOT contracts when negotiating the concession period. As a result, the use of the model should increase the total benefit to both parties.