ADMINISTRATIVE FRAMEWORK

The government must establish a credible and efficient administrative framework to streamline planning & coordination, and administration of BOT projects. Establishing an efficient administrative framework is essential for successful implementation of BOT project as it has been cited that complicated bureaucratic procedures and lack of authority for administrators to make decision are amongst the obstacles to BOT operations. In addition to this, efficient administrative framework will also considerably accelerate private sector investments in BOT projects.

The two critical functions of administrative framework are planning & co-ordination, and administration, which are discussed in detail below.

Planning and Co-ordination: At the institutional level, most of the governments have appointed an internal focal point to formulate and coordinate their BOT policy. The implementing ministry such as ministry of public works or the centralised planning agency such as Planning Commission could become the focal point of the institutional arrangement that lead the BOT strategy. The responsibilities of the agency holding the institutional focal point in BOT policy are as follows:

• Formulating government BOT policy and selecting sectors suitable for BOT projects.
  
  
• Proposing legislation and setting up administrative regulations to promote and monitor BOT projects.
  
  
• Setting up rules to rationalize and coordinate administrative procedures with ministries, government agencies, and local authorities.
  
  
• Ensure proper economic and financial analysis of BOT projects.
  
  
• Initiating drafting of model project agreements and approving any deviations from such agreements.
  
  
• Identifying and prioritizing appropriate BOT projects in cooperation with implementing ministries, government agencies and local authorities.
  
  
• Deciding the procurement method to be applied to BOT projects and initiating and approving the drafting of procurement regulations for BOT projects.
  

Administration: BOT project require approvals, permits and consents from several ministries, public agencies and local authorities, it is desirable for the host government to coordinate in advance the policies and responsibilities of those entities. Most of the countries have adopted single window system as most efficient approach to the administration of BOT projects. Under such system, Project Company needs to deal with only one government office to obtain and renew all necessary approval, permit and consents for construction and operation of project.