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.

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.

Rhythms of division of some algae in situ and in laboratory culture. [Translation from: Studii Cerc.Biol.(Bot.) 21, 61-65, 1969. ]

The rhythm of division of 9 species belonging to different groups of algae were analysed in situ and in the laboratory. The research which developed in different environmental conditions attempted to establish the capacity for multiplication and assimilation of chlorophyll on the part of the algae under study with a view to placing them in a culture. The results obtained showed that the green multicellular algae (eg. Ulothrix) and the blue algae (eg. Lyngbya, Oscillatoria) are able to produce an appreciable quantity of dry matter, just as the unicellular algae. At the same time it arises that amongst the numerous factors of the environment, temperature plays one of the most important roles in the process of multiplication.

Experimental research on the development of Ceratium hirundinella O.F.Muller [Translation from: Z.Bot. 14, 337-371, 1922]

The most important aim of this study lay in filling in the great gap in our knowledge of the processes of germination in the Ceratium cyst and the early developmental stages in the standing stock of Ceratium hirundinella. contained rich cysts, we now succeeded extraordinarily well in pursuing the consistent development of Ceratium from the cyst to the completed cell. A series of experiments were carried out on the cysts and the juvenile stages of Ceratium, which showed very interesting results. The author presents in a general descriptive part the normal processes of germination in Ceratium cysts and the development of the juvenile stages in order to show in an experimental part the changes in form of C. hirundinella under the influence of temperature, light and varying salinities.

Some observations on the behaviour of plankton in waters discharged by the lakes [Translation from: Ost.bot.Zeit 103(1), 98-109, 1955]

This information is based on the limnological observations of the very interesting and remarkable discharge of the Lunzer Obersee, (1117m). On journeying towards the Mittersee, the Lunzer Obersee discharge takes on all the characteristics of spring-water; it was found to be of interest to take note of the change of the composition of the water on those stretches of the course where it flows shows the ground. For this purpose it was necessary to take temperature-recordings, chemical examination of the water and a quantitative determination of the plankton. Samples were taken in 1954 of zooplankton at different times of the year at the discharge of the lake and analysed. The significant loss of organisms in the way of discharge is discussed.

Les projets build, operate and transfer (BOT): une démarche contractuelle efficace dans les investissements internationaux

Dans le vaste champ du droit international des affaires, les projets «Build, Operate and Transfer» (BOT) signifiant «Construire, Exploiter et Transférer» et leurs variantes semblent moins connus du fait qu'ils représentent un type particulier d'investissement. La réalisation de ces projets fait intervenir de nombreux acteurs (notamment l'État hôte, la société concessionnaire et les cocontractants) aux intérêts souvent divergents mais qui tendent tous à la satisfaction d'un objectif commun: la réussite du projet. L'une des particularités de ces projets est que l'État ayant un fort taux d'endettement et d'impérieuses contraintes budgétaires limitant la capacité du secteur public aux besoins croissants en matière d'infrastructures, bénéficie sous certaines conditions, la participation du secteur privé qui supporte d'énormes risques financiers. Notre étude se veut d'abord une pénétration des mécanismes contractuels des projets BOT afin de déceler les enjeux qui font leur complexité. C'est à la suite de cette analyse que succèdera l'étude des problèmes juridiques affectant l'enveloppe financière, les garanties étatiques ainsi que l'allocation des risques. Dans la troisième partie, notre réflexion sera relancée pour comprendre des questions multiples liées à la sécurisation des investissements BOT réalisés dans les pays à instabilité politique particulièrement en Afrique. Le bilan s'ouvrira sur une analyse critique des sentences arbitrales ciblées en insistant sur des principes très généraux dont l'application a fait l'objet des débats animés en droit des investissements.

Manual de pr??cticas de Bot??nica

Cuaderno de trabajo cuyo objetivo es convertirse en un instrumento que posibilite realizar pr??cticas de bot??nica. Est?? orientado a la investigaci??n did??ctica centr??ndose fundamentalmente en trabajos de clasificaci??n, observaci??n y comprobaci??n de leyes, experiencias motivantes para el profesor en su aproximaci??n al estudio de los vegetales. Cada una de las experiencias est?? estructurada en un planteamiento de objetivos, relaci??n de material a utilizar, esquema o dibujo de la experiencia, desarrollo de la misma en pasos claros y una serie de propuestas de post-actividades. La dificultad en la realizaci??n va en orden creciente, facilitando la operatividad de aprendizaje en los distintos niveles educativos desde el ??ltimo ciclo de Primaria hasta la Educaci??n Secundaria.

El nou jard?? bot??nic de Palma. 'El nuevo jard??n bot??nico de Palma'

Se denuncia la situaci??n de abandono y progresivo deterioro de la zona conocida como Es Carnatge, franja litoral situada en la bah??a de Palma. Se anuncia que a pesar de la degradaci??n ambiental ha sido reconocida como unidad de inter??s geol??gico y bot??nico. En los planes del Ministerio de Medio Ambiente figura la recuperaci??n de la zona, as?? como la creaci??n de un jard??n bot??nico. Se analizan las causas que han conducido a la situaci??n actual, enmarc??ndolas en una perspectiva global de la zona mediterr??nea y se apunta la necesidad de la conservaci??n del medio ambiente.

En Quim Botó i les traduccions al català el 1999. 'Quim Botó y las traducciones al catalán el 1999'.

Resumen en catalán

Grupo de bot??nica Aristolochia pistolochia

'Aristolochia pistolochia'.

Canencia : estudio bot??nico por la zona norte de Madrid. Cuaderno del alumno, cuaderno del profesor

Los objetivos que se plantean en esta obra se han dividido en dos n??cleos. El primero se refiere a la utilizaci??n y aplicaci??n de una serie de instrumentos que el alumno va a necesitar para realizar esta actividad y que posteriormente le servir??n para cualquier tipo de trabajo en el campo. El segundo n??cleo hace menci??n a la adquisici??n de conocimientos sobre las diferentes especies vegetales de la zona norte de la Comunidad de Madrid. Se pretende que el estudiante aprenda a observar y a dibujar, y que sepa utilizar los cuadros de tipos de hojas y la bibliograf??a. El cuaderno del alumno consta de cinco partes diferenciadas entre s?? por el distinto color de sus hojas. La actividad se estructura en un trabajo previo a la salida, en un trabajo de campo y en un trabajo posterior a aqu??lla..

El Jard??n Bot??nico : Marimurtra, de Blanes

El jard??n bot??nico Marimurtra, situado en la Costa Brava catalana, surge como Centro al servicio de la ciencia y de la investigaci??n de la Estaci??n Internacional de Biolog??a Mediterr??nea en 1951. Se considera un rinc??n privilegiado y de visita obligatoria donde conviven m??s de tres mil plantas, entre especies nacionales y ex??ticas.

Artes y emociones que potencian la creatividad : informe Fundaci??n Bot??n 2014

La Fundaci??n Bot??n ha publicado este segundo informe "Artes y emociones que potencian la creatividad", cuyos objetivos fundamentales son dos: concienciar a la comunidad educativa, en un sentido amplio, de la importancia que tienen las artes en la formaci??n de todas las personas (no s??lo de los artistas), debido a los beneficios que producen en su desarrollo personal y social y, especialmente, por la capacidad que tienen para potenciar la imaginaci??n y la creatividad; y sentar las bases y el modelo de trabajo que, desarrollado en colaboraci??n con la Universidad de Yale, utilizar?? el Centro Bot??n de Santander (www. centrobotin.org) en sus programas formativos para desarrollar la creatividad a trav??s de las artes y las emociones que ??stas generan.