Build-own-operate-transfer
Also called: BOOT · Topic: Infrastructure: Transport, Communications and Energy · NCERT: Beyond NCERT
Meaning
Build-own-operate-transfer (BOOT) is a public-private partnership (PPP) model with four steps. The private party builds a facility and owns it during the concession period (the contract period). It runs the facility and recovers its money from user charges. When the period ends, it transfers ownership to the government. Owning the asset makes it easier for the private party to raise loans against it.
Example
A private firm builds a toll bridge and owns it for the concession period. It collects tolls to recover its cost and profit. When the concession ends, it hands the bridge to the state government.
Don't confuse with
- Build-own-operate (BOO): the private party owns the asset forever, with no transfer.
- BOT: in a plain BOT the private party usually only holds the right to build and operate. In BOOT it holds legal ownership during the concession.
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
- Build-own-lease-transfer