BOTs have a project-specific application so they are potentially a good vehicle for a specific investment, but with less impact on overall system performance. It can be difficult to link the increases in production brought about by a BOT with commensurate improvements on the demand side. While initial capital construction costs may be reduced through the private sector's experience, private debt may be an expensive substitute for public financing where a take-or-pay agreement is in place
The benefit of competition is limited to the initial bidding process and these contracts are often renegotiated during their life. The tender documents and processes require careful design and adequate time.