Indicative FSP

Evaluating Investments in Construction Industry: Case Study of a BOT (Built-Operate-Transfer) Project

Modern economies have escalating needs for developing, repairing and modernizing their infrastructure. In this context, the BOT (Build-Operate-Transfer) technique is gaining increased importance. This project consisted of an overview of the knowledge and practices concerning the methodology of BOT projects. Based on a case study of a BOT project for Mochlos Construction Company, which will include a Hotel, a Conference Centre, an Exhibition Centre, Commercial Shops, Parking and Cinemas, a methodology for evaluating BOT project was developed. The methodology includes an analysis of the economic and construction environment, traditional measures of investment evaluation (Payback Period, NPV, Internal Rate of Return) and risk analysis (Scenario and Sensitivity Analysis, Monte Carlo Simulation, Project’s Beta, Cost of Capital, Real Options).

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