The following graph shows the contractual structure of a typical BOT project or CONCESSION, including loan agreements, shareholder agreement between the project company`s shareholders, and subcontracts for the operating agreement and construction contract, which typically takes place between the project company and a member of the project company consortium. A BUILD-Operate-Transfer (BOT) contract is a financing model for large projects, usually infrastructure projects, developed through public-private partnerships. A build-operate-transfer (BOT) agreement is an agreement under which an investor commits to build a specific infrastructure asset (e.B an airport, port, power plant, water supply system, etc.) build, finance, finance and operate the construction for a period of time before transferring the infrastructure plant to the government. The duration of such an agreement is generally long enough for the investor to cover the investment costs of infrastructure construction by charging a tariff or user fee during the period during which it operates the infrastructure. The BOT system refers to the initial concession of a public body such as a local government to a private company to build and operate the project in question. After a fixed deadline, usually two or three decades, control of the project is returned to the public institution. Each project will include a variant of this contractual structure according to its particular requirements: not all BOT projects require a guaranteed supply of inputs, so no agreement on the supply of fuels/inputs can be required. Cash flow can be realized in whole or in part via the general public`s tariffs and not by an accepting buyer. A build operate transfer (BOT) project is typically used to develop a discrete asset rather than an entire network, and is usually completely new or new (although a renovation may be required). In a BOT project, the project company or project operator typically generates its revenue through a fee charged to the utility/government, rather than through rates charged to consumers.
In common law countries, a number of projects are called concessions, such as toll road projects. B, which are new constructions and have a number of similarities with BOT. Concessions, build-operate-transfer (BOT) projects, and design-build-operate (BOD) projects are types of production-oriented public-private partnerships. BOT and BOD projects typically include extensive planning and construction, as well as long-term operations for new buildings (greenfield) or projects with significant redevelopment and expansion (brownfields). Below are definitions of each type of agreement, as well as the main features and examples for each agreement. This page also contains links to sector-specific checklists, toolkits and PPP information. One example is power purchase agreements, in which a utility acts as a buyer and buys electricity from a private power plant. Under a traditional concession, the company would sell directly to consumers without government intermediaries. BOT agreements often set minimum prices that the customer must pay. A concession gives a concessionaire the long-term right to use all supplies transferred to the concessionaire, including responsibility for operations and certain investments. Ownership of assets remains in the hands of the authority, and the authority is usually responsible for replacing larger assets. Assets shall revert to the Authority at the end of the concession period, including assets acquired by the concessionaire.
In a dealership, the dealer usually receives most of its income directly from the consumer and therefore has a direct relationship with the consumer. A concession covers an entire infrastructure system (i.e. it may also include the acquisition of existing assets by the concessionaire and the construction and operation of new assets).