Agreement Synopsis, Context and Review

Highway privatisations around the world have been completed using concession contracts, often in the form of Build, Operate, Transfer (BOT) projects (2003). Successful BOT projects require the proper allocation of risks among the project’s stakeholders. Whereas some risks — such as construction, operational or legal risk — are clearly controllable by some stakeholders, traffic risk can not be controlled by any of them. As a result, allocating traffic risk is one of the greatest challenges in designing highway concession contracts.

DBFO Concession Agreement for design, build and financing of improvements to Sea-to-Sky Highway in BC, Canada. The Concession is for 16 years. The DBFO Contractor is paid Total Performanc Payments (based on Availability Payment, Vehicle Usage payment and Performance Incentives). DBFO Contractor is not to charge tolls/ user charges. Click on Project Schedules for other key documents.