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BUILD OPERATE TRANSFER PROJECT [BOT]


BUILD OPERATE TRANSFER PROJECT


 BOT (build -operate- transfer) is a major start up venture where private organizations undertake to build and operate an infrastructure project /any other project. Government cant finance to the big projects because of lack of funds so the Government attracts private participation under BOT projects.

Many countries implement and adopt BOT projects successfully to place major public investments, particularly for infrastructure projects, into the private sector.  many have adopted the Build -Operate Transfer, or BOT approach, so that the private sector has to finance, construct, operate the project facility, and then transfer the ownership to the government after a specified concession period. Therefore the BOT scheme is a limited recourse project financing technique for implementing infrastructure projects by using private funding.


BUILD OPERATE TRANSFER - BOT
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In a BOT arrangement, the private sector designs and builds the infrastructure, finances its construction and owns, operates and maintains it over a period, often as long as 20 or 30 years. This period is sometimes referred to as the "concession" period.  After the concession period as per the agreement, the ownership will transfer to the Government.

 


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