THE BOT is widely used in infrastructure projects and public-private partnerships. Under the BOT, a third party, for example public administration. B, delegated to a private organization to design and build infrastructure and operate and maintain these facilities for a period of time. During this period, the private party is responsible for financing the project and is authorized to retain all revenues generated by the project and owns the entities under consideration. The facility is then transferred to the public administration at the end of the concession contract, without remuneration from the private entity concerned. Some parties, or even all subsequent parties, could be involved in any BOT project: 1) Build-Operate-Transfer-ContratThis is a „construction operating transfer contract“A construction transaction transfer contract is a model for financing large projects, usually infrastructure projects developed by public-private partnerships. Breaking DOWN Operating Transfer Contract` Under a Business Transfer Contract (BOT), a company – usually a government – grants a concession to a private company for financing, building and operating a project. The company manages the project for a period – perhaps 20 or 30 years – with the aim of recovering its investments and then transferring control of the project to the government. BOT projects are generally large infrastructure projects in green grasslands that would otherwise be funded, built and operated exclusively by the government. It is a highway in Pakistan, a sewage treatment plant in China and a power plant in the Philippines. In general, BOT suppliers are awardees that have been created specifically for a particular project. During the duration of the project – when the contractor manages the project he has built – the revenue usually comes from one hand, from a client.
It may be a public or public enterprise. An example of this agreement is the contracts in which a state-owned supply company acts as a buyer and purchases electricity from a private facility. Under a traditional concession, the company would sell directly to consumers without government intermediaries. BOT agreements often set minimum prices that the buyer must pay. There are a number of variants of the BASE-BOT model: under the Build-Own-Operate Transfer (DEA) contracts, the contractor owns the project during the project period; Under work leasing contracts (LTOs), the government leases the project by the contractor during the project period and assumes its operation. Other variants have the design of the contractor as well as the project to be built: an example is a contract for the construction of a design opera (DBOT). The graph below shows the contractual structure of a typical bot project or a typical concession, including loan agreements, the shareholder contract between the project company`s shareholders and the subcontracting of the enterprise and construction contract, usually between the project company and a member of the project company consortium. Concessions, construction transfer projects (BOOs) and DBO (design-build-operate) projects are types of production-oriented public-private partnerships.
BOT and BOD projects generally include major projects and construction work, as well as long-term operations for new construction (green meadow) or major renovation and expansion projects (brown surfaces).