Project pitfalls

It is often not realized that Asian governments have assumed a considerable amount of responsibility under build-own-transfer (BOT) and build-own-operate (BOO) arrangements for infrastructure projects. Indeed, there are a number of features of government support contracts for such projects that could make private infrastructure development schemes in some Asian countries a substantial sovereign debt problem. Governments are likely to end up owing large sums to export credit agencies, international banks and multilateral institutions for infrastructure development.