Xenidis, Y and Angelides, D (2005) Identification and classification of risks in a new modelling process for build - operate - transfer projects. In: Khosrowshahi, F (Ed.), 21st Annual ARCOM Conference, 7-9 September 2005, SOAS, University of London. Association of Researchers in Construction Management, Vol. 2, 803-12. IDENTIFICATION AND CLASSIFICATION OF RISKS IN A NEW MODELLING PROCESS FOR BUILD – OPERATE – TRANSFER PROJECTS Yiannis Xenidis and Demos Angelides Department of Civil Engineering, Aristotle University of Thessaloniki, Thessaloniki, 54124, Greece The Private – Finance –Initiative (PFI) procurement methods provide a framework for countries that lack the adequate own funds to develop major infrastructure projects. The Build-Operate-Transfer (BOT) projects represent a variation of these procurement methods. Success of these projects depends on the project agreement and, especially, the risk management during the whole life cycle. This paper contributes to the risk management of a successful BOT project by introducing a comprehensive new risk inventory and classification scheme of BOT risks. The inventory comprises 86 risks, which are classified based on two criteria, i.e. their nature and the source of their origin. Each one of these criteria comprises several categories, which are explicitly presented and discussed. This classification enables the assignment of risks to the project’s life cycle phases, where they may occur, and the mapping of their interrelations; both are the next steps of the development process for a BOT fuzzy-based risk assessment model, which is also presented and discussed in brief. The overall approach facilitates risk assessment and understanding in BOT projects and provides a clear risk framework, which is comprehensible by risk analysts as well as responsive to their demands. Keywords: BOT projects, Fuzzy theory, Life cycle, Risk. INTRODUCTION Build-Operate-Transfer (BOT) procurement method for construction projects is one of the varying schemes for the development of public infrastructure with the partnership of the private and the public sectors. The reasons for a government to adopt the BOT scheme are: (a) lack of funding resources, (b) poorly equipped and organized domestic construction industry, (c) limited experience and expertise of the domestic workforce for certain types of construction projects, and (d) faster completion and operation of the project. All these constraints are successfully lifted under the BOT project development scheme because the project developers (concessionaire) undertake the funding and the technical and commercial risks for the development and operation of the project. The concessionaire retains full control of the project until the end of a predefined time period – called the concession period – when it transfers the project back to the government. The undertaking by the concessionaire of all the risks associated with the project during the concession period is a major issue of concern for all parties involved, i.e., the contractors, the sponsors, and the government. The success of a BOT project lies in the appropriate initial risk assessment by the potential concessionaire, which provides with the reasoning for a “go or no go” decision. Risk assessment determines