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what is build transfer operate BTO scheme and why its not viable for bridge project

what is build transfer operate BTO scheme and why its not viable for bridge project

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Answer #1

Built-Transfer-Operate scheme suggests that a tender would be disclosed in the open market. The one charging the least cost with the best quality would be selected. The selected company would now build the project on behalf of the company which has given the tender. It will complete the project, make it functional and transfer it back to the company which gave the tender for the regular operations.

The reason it should not be used for a bridge project is as follows:

1. The parent company, which gave the tender does not know the risks of the project.

2. The parent company cannot be sure of the material used in construction.

3. The tender could be given to a known relative hence a high chance of fraud taking place.

4. The bridge construction could cost much higher through the build operate and transfer method.

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