Monday, October 17, 2011

Build Operate and Transfer

Building airports through investments programs:


In view of airport needs to keep up with technological development and the research and development, which can stretch the government budgets as well as building and developing airports at the same time. Egypt for instance has encouraged the national and foreigner investors to enter that field through the "Build Operate and Transfer" (BOT) system.


Contracts were concluded with investors to build airports in various areas of Egypt such as Marsa Alam, Al Alamain, Al Wahat, Al Farafra, Ras Sidr and others all over the whole world.

Actually it is a management contract system where the owner-ship remains with the government and the contractors take responsibility for the day to day operation of the airport. The contractor will pay an annual management fee usually related to the performance of the airport. Investment will remain the responsibility of the government owner, while the overall economic risk will be shared between the owner and the management company.

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