M2 Marketing

October 4, 2021

Build, Operate And Transfer BOT Schemes – Key Initiative For Infrastructure Provision

NORTHAMPTON: The use of public-private partnership to design, build and deliver infrastructure worldwide has grown significantly over the past decade.

Research has shown that if public-private partnership is properly designed and transparently reported, it can enhance the efficiency of provision of services, which were earlier supplied solely by the private sector.

A key form of such public-private partnership is the Build, Operate, and Transfer (BOT) model. BOT projects are a type of public-private partnership that involves significant design and construction as well as long-term operations for newly built (Greenfield) projects or significant refurbishment (brownfield) projects.

BOT projects are typically used to develop a discrete asset rather than a whole network. In a BOT project, the project company or operator generally obtains its revenues through a fee charged to the utility/government rather than tariffs charged to consumers.

BOT schemes have historically been used extensively for the development of mining and natural resources. Since the 1980s, these schemes have gained currency with governments around the world to systematically raise off-balance-sheet financing for infrastructure and industrial projects.

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