Subject category:
Strategy and General Management
Published by:
INSEAD
Length: 18 pages
Data source: Field research
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Abstract
On September 12, 1998, Christian Michelon, CEO of Pam Lyonnaise Jaya (PT Palyja), heard that his company was being sued by an association of ''contractors'' and a group of lawyers. His company obtained the concession of water treatment for the western part of Jakarta, the Indonesian capital. The case deals with the whole sequence of the contract negotiation and the subsequent events that took place in the aftermath of the Asian financial crisis. The case deals with the problems of contact negotiation and implementation for BOT (Build, Operate and Transfer) and concession contracts for large utilities. This type of contract represents some specific risk, often referred as ''obsolescing bargaining''. It allows students to discuss the nature of BOT and concessions, their risks and benefits. It also deals with political risks in the context of an emerging country.
Location:
Industry:
Size:
EUR31 billion in 1997
Other setting(s):
1995-1998
About
Abstract
On September 12, 1998, Christian Michelon, CEO of Pam Lyonnaise Jaya (PT Palyja), heard that his company was being sued by an association of ''contractors'' and a group of lawyers. His company obtained the concession of water treatment for the western part of Jakarta, the Indonesian capital. The case deals with the whole sequence of the contract negotiation and the subsequent events that took place in the aftermath of the Asian financial crisis. The case deals with the problems of contact negotiation and implementation for BOT (Build, Operate and Transfer) and concession contracts for large utilities. This type of contract represents some specific risk, often referred as ''obsolescing bargaining''. It allows students to discuss the nature of BOT and concessions, their risks and benefits. It also deals with political risks in the context of an emerging country.
Settings
Location:
Industry:
Size:
EUR31 billion in 1997
Other setting(s):
1995-1998