Improving the management of highway construction projects using BOT system for heavy vehicles: A case study in Diyala

Due to population growth, introduction of new technologies in the construction industry, political turmoil and mismanagement that have plagued all countries of the world, especially developing countries like Iraq, the demand for infrastructure development in developing countries has witnessed a sharp increase in recent times. Governments are no longer able to keep up with the pace of society development and meet its demands. As a result, it has become imperative for private sector partners to join the public sector in financing infrastructure projects and sharing the associated risks. Both BOT and PPP are two distinct financing models that have shown strong progress and great potential for growth in the infrastructure industry, in terms of project financing. This paper discusses the concept, content, functions, advantages and disadvantages of financing, applicability and evolution of the two financing models in our nation from the perspective of investment and government financing. In this study, the Khalis-Baghdad road was chosen as a case study, as this road witnessed heavy traffic and stops because it is one of the most important commercial roads entering the capital, Baghdad, from its northern entrance, which works as a commercial link and transports goods and commodities from northern Iraq and outside the capital or passes through the capital on its way to southern Iraq. Also, due to the lack of periodic maintenance of the road as a result of the heavy loads placed on it for long periods, which led to significant deterioration of the road, a proposed investment road was established that includes heavy vehicles and was analyzed economically. After applying the BOT system, the net present value reached 59,119,395,765 dinars and a B/C ratio of 2 after operating for 10 years. The results were very good, indicating the possibility of applying and implementing such projects with this contract system in Iraq.