Reasonable Concession Period for Build Operate Transfer Contract Projects: A Case Study of Theun-Hiboun Hydropower Dam Project and National Road No. 14 A Project

Abstract

The Public-Private-Partnerships is generally absent to provide policy-makers with pros and cons about PPP and a suitable form and approach to be applied in Lao PDR. A majority of infrastructure development projects approved so far were in accordance with individual negotiation between the public and private sectors with a case-by-case agreement. And the concession period is one of the most important decisions to be made for PPP project contract is applied to infrastructure projects as implemented under the build-operate-transfer contract. This is the measure for making decision on the timing of ownership and for delineating benefits, authorities, and responsibilities between the government and private investor. The duration of the concession period directly affects both the investor’s level of return on investment and the government’s interests. In currently Lao very lack of research on this issue. Therefore this paper determined the suitable concession period for Theun-Hiboun Hydropower Dam Project and National Road No. 14A Project .The cash flow of the project was applied analysis method and also analytical as regression analysis and Shen’s model the for concession period.