Build-own-lease-transfer
Also called: BOLT · Topic: Infrastructure: Transport, Communications and Energy · NCERT: Beyond NCERT
Meaning
Build-own-lease-transfer (BOLT) is a public-private partnership (PPP) model with four steps. The private party builds a facility and owns it. It then leases the facility to the government, which uses or runs it and pays rent. The rent lets the private party recover its cost and earn a return. At the end of the lease, ownership passes to the government. This lets the government get an asset without paying the full cost upfront.
Example
A private firm builds a hospital building and keeps ownership. It leases the building to a state government, which runs the hospital and pays yearly rent. When the lease ends, the building becomes government property.
Don't confuse with
- Build-own-operate-transfer (BOOT): here the private party runs the facility itself and earns from users. In BOLT it earns lease rent from the government.
Related concepts
- Public-private partnership
- Concession agreement
- Engineering, procurement and construction
- Hybrid annuity model
- BOT-Annuity
- Annuity model
- BOT-Toll
- Build-operate-transfer
- Build-own-operate-transfer
- Build-own-operate