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BOT Projects: High Equity, High Risk
3 Mar
Summary
- BOT projects demand substantial developer equity compared to HAM projects.
- Developers face significant toll and traffic risks in BOT road projects.
- Investor-friendly measures introduced for BOT (Toll) projects.

While the government has implemented investor-friendly measures for Build-Operate-Transfer (Toll) road projects, the financial structure of these ventures presents considerable challenges. Developers must commit substantially more equity compared to Hybrid Annuity Model (HAM) projects, doubling the initial investment required.
Furthermore, BOT projects expose developers to significant risks related to toll collection and actual traffic volume. This exposure is amplified by the current pipeline of new highway developments, increasing uncertainty about revenue generation and project viability.