Azoo Government Projects (Scenario)
The nation of Azoo needs the assistance of a contractor to construct a new bridge and a subway system. The nation lacks the skilled labor and technical know-how to handle such large-scale projects. Representatives of the Azoo government are reviewing the project bids provided by two different international contractors. Contractor A proposes a turnkey contract for Azoo. Contractor B proposes a build-operate-transfer arrangement.
-The government of Azoo might select Contractor B in order to ________.
A) prevent the builder from operating in the country for even a short period of time
B) avoid rental fee, user fee, and tolls during the operational stage of the bridge and subway system
C) build the projects cost-effectively
D) increase the number of visitors to Azoo

Question

Quizplus · Accepted Answer

Build-operate-transfer (BOT) arrangements can be more cost-effective for the government because the contractor is responsible for the construction, operation, and maintenance of the project for a specified period before transferring ownership to the government, potentially reducing upfront costs and spreading them over time.