The President of the Students’ Representative Council (SRC) of the University of Ghana, Mr Sylvester Amoako has proposed a build-operate-transfer (BOT) for the construction of a hostel facility for the SRC to accommodate students.
“The SRC would propose that the hostel project is undertaken. Concisely, the SRC would seek for funds from Wealth Management Company which seeks to operate on the basis of BOT” Amoako said.
He made this proposal at the second General Assembly meeting when he delivered his State of the SRC address.
According to him, the SRC has initiated talks with Wealth Management Company to pre-finance the project.
The SRC hostel project which was conceived over a decade ago has not materialized though students over the years were levied for it.
Build–operate–transfer (BOT) or build–own–operate–transfer (BOOT) is a form of project financing, wherein a private entity receives a concession from the private or public sector to finance, design, construct, own, and operate a facility stated in the concession contract. This enables the project proponent to recover its investment, operating and maintenance expenses in the project.
Due to the long-term nature of the arrangement, the fees are usually raised during the concession period. The rate of increase is often tied to a combination of internal and external variables, allowing the proponent to reach a satisfactory internal rate of return for its investment.