Risk Assessment of BOT Road Projects

Abstract

The long lasting implementation of project risk management in India can best be evidenced by the construction project procedure that has been in use for over 4 decades in India. The feasibility study was formally introduced into the procedure in 1992. A capital project (including infrastructure projects) must follow the procedure.When an organization has identified its need for a new facility, it must submit a project proposal defining the purpose, requirements and general aspects of the project, such as location, performance criteria, scope, layout, equipment, services and other requirements. The definition and planning of the project shall be carried out in coordination with agencies in charge such as provincial, municipal, autonomous region governments, central ministries or commissions. The project proposals of a medium or large sized project must be submitted to the agencies in charge for review and comments. The priority projects are subject to review and approval by the State Council. The review and approval procedure makes sure that the project complies with the national economic and social development programs and there are sufficient resources available to the project. Once the proposal is approved site selection and feasibility study shall follow. The feasibility study involves the process of risk identification and analysis. Various matters should be considered when selecting the site for the proposed project and feasibility study is made, such as climate, topographical and geological conditions, resources, transportation, potential natural calamities, environment conservation, available services, and utilities and so on. Usually, several alternative sites and proposals should be considered and compared with each other in terms of the various factors influencing the project.