A Model Proposed for Financing Transportation Projects: Build-Operate- Transfer via Public-Private Partnership

Abstract

This study has pointed out that a new version of Build-Operate-Transfer (BOT) financing model generated out from classical BOT model can be used for highway financing. The classical BOT, one of the most popular PPP models has been oftenly employed by various countries for financing of large scale public projects. Over the last 20 year period a number of infrastructure projects in Turkey such as natural gas plants, airports and hydro electric power plants were constructed by using BOT model. In this study, the new version of BOT model is implemented on the projected Ankara-İzmir Highway Project. This highway project can be constructed at a lower project cost by using the suggested BOT model compared to the classical BOT model. Therefore, the lower project cost results in a lower toll rate.