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BOT Contracts
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. After a set agreed time frame control of the project is returned to the public entity. This concession allows the company to:
- Build the infrastructure project.
- Operate the project for a set period.
- Transfer ownership of the project back to the public entity at the end of the concession period.
Cell-O BOT contracts typically follow these stages:
- Development Stage: The public entity identifies a need for a new infrastructure project and issues a request for proposals (RFP) to private companies. The RFP outlines the project specifications and the concession terms.
- Construction Stage: The public entity selects a winning bidder based on their proposal. The private company then finances and constructs the project according to the agreed-upon specifications.
- Operation Stage: Once construction is complete, the private company operates and maintains the project for a predetermined period, typically 20-30 years.
- Transfer Stage: At the end of the concession period, ownership of the project is transferred back to the public entity.
Benefits of Cell-O’s BOT Contracts
- Access to Private Capital: Cell-O BOT contracts allow governments to access private sector funding for infrastructure projects, which can be a significant advantage when public budgets are constrained.
- Efficiency and Expertise: Private companies often have the expertise and experience to efficiently build and operate complex infrastructure projects.
- Risk Sharing: BOT contracts share risks between the public and private sectors. The private company bears the construction and operational risks, while the public entity retains ownership of the asset in the long term.
Ready to Unleash the Power
of Your Network?
Contact us today to discuss your specific infrastructure
needs and learn how our Build-Operate-Transfer contracts
can help you achieve your infrastructure goals.