Definition of Build-operate-transfer contract:
A build-operate-transfer (BOT) contract is a model used to finance large projects, typically infrastructure projects developed through public-private partnerships.
The BOT scheme refers to the initial concession by a public entity such as a local government to a private firm to both build and operate the project in question. After a set time frame, typically two or three decades, control over the project is returned to the public entity.
An agreement between a private company and a governmental body. The agreement commits the private company to build and operate a facility - such as a power plant - for a period of time then transfer ownership to the government. In some cases, an actual transfer does not take place; rather the government will act as primary customer.
How to use Build-operate-transfer contract in a sentence?
- Under a build-operate-transfer (BOT) contract, an entity—usually a government—grants a concession to a private company to finance, build and operate a project for a period of 20-30 years, hoping to earn a profit.
- BOT projects are normally large-scale, greenfield infrastructure projects that would otherwise be financed, built and operated solely by the government.
- A build-operate-transfer (BOT) contract is a model used to finance large projects, typically infrastructure projects developed through public-private partnerships. .
- After that period, the project is returned to the public entity that originally granted the concession.
Meaning of Build-operate-transfer contract & Build-operate-transfer contract Definition