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Llanto, Gilberto M.

Working Paper A Review of Build-Operate-Transfer for Infrastructure Development: Some Lessons for Policy Reform

PIDS Discussion Paper Series, No. 2008-25

Provided in Cooperation with: Philippine Institute for Development Studies (PIDS),

Suggested Citation: Llanto, Gilberto M. (2008) : A Review of Build-Operate-Transfer for Infrastructure Development: Some Lessons for Policy Reform, PIDS Discussion Paper Series, No. 2008-25, Philippine Institute for Development Studies (PIDS), City

This Version is available at: http://hdl.handle.net/10419/126750

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A Review of Build-Operate-Transfer for Infrastructure Development: Some Lessons for Policy Reform Gilberto M. Llanto

DISCUSSION PAPER SERIES NO. 2008-25

The PIDS Discussion Paper Series constitutes studies that are preliminary and subject to further revisions. They are be- ing circulated in a limited number of cop- ies only for purposes of soliciting com- ments and suggestions for further refine- ments. The studies under the Series are unedited and unreviewed. The views and opinions expressed are those of the author(s) and do not neces- sarily reflect those of the Institute. Not for quotation without permission from the author(s) and the Institute.

September 2008

For comments, suggestions or further inquiries please contact: The Research Information Staff, Philippine Institute for Development Studies 5th Floor, NEDA sa Makati Building, 106 , Legaspi Village, Makati City, Philippines Tel Nos: (63-2) 8942584 and 8935705; Fax No: (63-2) 8939589; E-mail: [email protected] Or visit our website at http://www.pids.gov.ph A Review of Build-Operate-Transfer for Infrastructure Development: Some Lessons for Policy Reform1

Gilberto M. Llanto2 Philippine Institute for Development Studies

Summary

The Philippines has used the BOT law, as amended to motivate private sector provision of infrastructure. Using examples from selected BOT projects in the country, the paper pointed out key issues constraining the successful implementation of the BOT approach to infrastructure provision. It also indicated several factors that were instrumental in forging an effective public- private partnership in BOT projects. The paper pointed out the need to address various issues, starting from the legal framework to the level of responsibilities of the government institutions that are involved in the project cycle, i.e., from project entry level to implementation and completion. Improvements should be introduced