Abstract:

In the developing countries, there is an interest to attract investments in private and foreign sectors due to the lack of financial resource required for infrastructure projects. Build-Operate-Transfer (BOT) method is one of the approaches in which the private sector is assigned to construct the project and gains its own interest after which it transfers the project to the government. In this paper, according to the proposed case study, a method was obtained to determine the concession period length and the transfer point of project by taking into account both parties' willingness, effects of risks and uncertainty regarding the project's parameters, considering the lack of complete information at least for one party by using bargaining game theory and Monte-Carlo simulation.