Evaluation of Success Factors of BOT Project in Pakistan

Abstract

The Lahore-Sialkot Motorway, M-11 (LSM) is in construction phase and located in the north south
region in Pakistan. It connects Lahore and Sialkot through Sambrial. Its length is 91 km. Expected completion date is in
December 2019 with its total cost of 44 billion Pak rupees. After its completion, expected travel time from Lahore to
Sialkot will be 50 minutes. This project is B.O.T mode (Build-Operate-Transfer). The contractor is one of the largest
private construction companies of Pakistan and as well as first local Trend Setter that offered B.O.T to a Government
entity. Despite of the importance of B.O.T, it was also necessary to evaluate the key success factors of the B.O.T projects
and to understand comparison of B.O.T and Item Rate Contract so that within under developing countries like Pakistan it
should be realized either which mode of construction is in the best interest of the country economy keeping in view all the
factors and parameters which affect on both type of construction modes (Item Rate Contract or BOT). Beyond of the
Theoretical and other technical differences like contract type, design, planning, cost and quality of work, the challenges
with respect to area, culture, environment, local government are also important considerations. This study gives not only
a clear picture for all the success factors in this regard but also concludes that what is the better approach between
B.O.T and Item Rate contract for Pakistan without compromising the quality of work and how the risks associated with
B.O.T projects can be compensated. Similarly last but not least this study will help a lot for the government departments
and local construction industries to understand the actual need of contract type either B.O.T contract or Item Rate
contract which is most suitable for the upcoming projects in Pakistan.