2019 Volume 75 Issue 1 Pages 51-62
Based on the incomplete contracting theories Okamoto et al. (2003) yields a conclusion that BOT (Build Operate Transfer).models deliver better VFM than BTO (Build Transfer Operate) models from the viewpoint of cost reduction. Iossa and Martimont (2012) suggests that such excellent performance of BOT should be observed in a more mature phase, where sufficient past evidence is available to inform parties of what may arise during operations. On the other hand, there are some quantitative analysis studies on the PFI contracts in Japan which include those at the initial phase. The studies analyzed that the contractual models didn't affect VFM and that VFM of the analyzed contracts were delivered by reduction of construction cost according to competition. In this paper we analyzed the last ten years PFI contracts in Japan and compared the results with those of the above previous studies taking into account the suggestions of the mentioned theoretical studies.
