Build-Operate-Transfer
Build-Operate-Transfer (BOT) is a form of project financing, wherein a private entity receives a franchise from the
public sector to finance, design, construct, and operate a facility for a specified period, after which ownership is transferred back to the public sector. During the time that the project proponent operates the facility, it is allowed to charge facility users appropriate tolls, fees, rentals, and charges stated in their contract to enable the project proponent to recover its investment, and operating and maintenance expenses in the project. In some countries, such as
Canada, the term used is
Build-Operate-Own-Transfer (BOOT).
BOT is now also used in the off-shoring and outsourcing of knowledge work. In these cases there is usually no government or public funding involved. Typically a Western customer contracts with an India or China vendor and the vendor builds and operates a customer call center or other business process for an extended period of time. But the client retains the right to take over the operate ("transfer") at any time based on certain conditions and certain payments to the offshore partner.
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Public-private partnership*
Privatization*
Build-Operate-Transfer (BOT): Private investment in public projects*
Philippine Build-Operate-Transfer Law
