Operate-maintain-transfer
Also called: OMT · Topic: Infrastructure: Transport, Communications and Energy · NCERT: Beyond NCERT
Meaning
Operate-maintain-transfer (OMT) is a PPP model for an asset that is already built and working. A private party runs and maintains it for a fixed period and collects user fees, such as tolls, to cover its costs. At the end of the period it hands the asset back to the government. The government saves on the daily work of upkeep, and users get a better-maintained asset.
Example
Take an operating national highway stretch that already has toll plazas. The government hands it to a private operator for a fixed number of years. The operator fills potholes, runs the toll plazas and keeps the toll money, then returns the road when the term ends.
Don't confuse with
- Toll-operate-transfer (TOT): under TOT the private party pays the government a large upfront lump sum for the toll rights, and OMT does not have this upfront payment. The first TOT bundle in 2018 covered 9 national highway stretches for about ₹9,681 crore over 30 years.
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