Build–operate–transfer

Build–operate–transfer (BOT) or build–own–operate–transfer (BOOT) is a form of <a href="/facts/Project_delivery_method/THQMmlSJ">project delivery method</a>, usually for large-scale infrastructure projects, wherein a private entity receives a <a href="/facts/Concession_(contract)/ATTRqkKc">concession</a> from the <a href="/facts/Public_sector/bV8gdzPu">public sector</a> (or the private sector on rare occasions) to finance, design, construct, own, and operate a facility stated in the concession contract. The private entity will have the right to operate it for a set period of time. This enables the project proponent to recover its investment and operating and maintenance expenses in the project.
BOT is usually a model used in <a href="/facts/Public%E2%80%93private_partnership/b4RAUT2j">public–private partnerships</a>. 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 <a href="/facts/Internal_rate_of_return/DLTUfSMI">internal rate of return</a> for its investment.
Countries where BOT is prevalent include <a href="/facts/Thailand/GCUnN4JK">Thailand</a>, <a href="/facts/Turkey/KIYAWAs0">Turkey</a>, <a href="/facts/Taiwan/VcJoUD8w">Taiwan</a>, <a href="/facts/Bahrain/ndXdWPhr">Bahrain</a>, <a href="/facts/Pakistan/cbIsvJy1">Pakistan</a>, <a href="/facts/Saudi_Arabia/uyUpe1J2">Saudi Arabia</a>, <a href="/facts/Israel/dEe3IcaY">Israel</a>, <a href="/facts/India/1kKHcnxM">India</a>, <a href="/facts/Iran/24yukge8">Iran</a>, <a href="/facts/Croatia/MSS0yyvw">Croatia</a>, <a href="/facts/Japan/U5mz0SRT">Japan</a>, <a href="/facts/China/lTjIXY5p">China</a>, <a href="/facts/Vietnam/0ulfA8Eq">Vietnam</a>, <a href="/facts/Malaysia/8zbUMzCP">Malaysia</a>, <a href="/facts/Philippines/ARpmxXQV">Philippines</a>, <a href="/facts/Egypt/8Ttg0JwB">Egypt</a>, <a href="/facts/Myanmar/zcqQH2oE">Myanmar</a> and a few US states (<a href="/facts/California/zLW2vdQJ">California</a>, <a href="/facts/Florida/cF245A3Q">Florida</a>, <a href="/facts/Indiana/VRnvjXoQ">Indiana</a>, <a href="/facts/Texas/B987WHF0">Texas</a>, and <a href="/facts/Virginia/g2kucGdn">Virginia</a>). However, in some countries, such as <a href="/facts/Canada/cWWFM8oc">Canada</a>, <a href="/facts/Australia/qLHpbppq">Australia</a>, <a href="/facts/New_Zealand/4mpSlJdg">New Zealand</a> and <a href="/facts/Nepal/yWCzTBR2">Nepal</a>, the term used is build–own–operate–transfer (BOOT).
The first BOT was for the <a href="/facts/China_Hotel/SC43EkMn">China Hotel</a>, built in 1979 by the Hong Kong listed conglomerate <a href="/facts/Hopewell_Holdings_Ltd/caeAm6vF">Hopewell Holdings Ltd</a> (controlled by Sir <a href="/facts/Gordon_Wu/0xKNVGoF">Gordon Wu</a>).

Build–operate–transfer open-in-new

Build–operate–transfer