IS BUILD-OPERATE-TRANSFER (BOT) SYSTEM AN EFFECTIVE INITIATIVE COMPARED WITH TRADITIONAL PROCUREMENT METHOD IN STUDENT HOUSING PROVISION IN AN EMERGING ECONOMY?
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Keywords
BOT, PFI, Student Housing, TPM, Tertiary Institutions
Abstract
BOT is a scheme or private finance initiative (PFI) or alternative procurement method in which a government contractually grants to a private sector entity a concession requiring the entity to obtain financing for design, build and operate a
public facility or infrastructure for a fixed period of time, during which the private entity can recover its costs of construction, plus profit, by charging fees or tools for its use and at the end of the concession period, transfer ownership and operation of the facility back to the government. This paper examines stakeholders’ perception in Nigeria on the effectiveness of BOT as a private finance initiative (PFI) for student housing provision and compares it with traditional procurement method (TPM). It also determines the association between the respondents’ years of experience in BOT procurement and the outcome of assessment based on the identified factor frameworks. To achieve these objectives, questionnaires were administered on a sample of the core professionals and experts who are staff in Physical Planning and Development Units (PPDU), Housing unit, Works and Maintenance sections of the selected tertiary institutions in Nigeria. Data were analyzed using descriptive statistics, Chi-square and t-test. The result indicates higher level of effectiveness in favour of BOT than TPM. It also found that, except for cost/funding, there is a significant relationship between the respondents’ years of experience and other factors. It also found that there is significant difference in the respondents’ assessment of BOT and TPM.
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