Build, Operate &
Transfer
Saurav Kumar
13BCL0046
What is BOT?
Features
• The private business builds and operates
the public facility for an agreed period of
time.
• Once the facility is operational as agreed,
or at the end of the time period, the private
entity transfers the facility ownership to the
public, here it may be construed as
Government.
Top 10 active states
in PPP
Examples
Airports
The Government of India has developed airports in several cities on a PPP
basis:
• Delhi, India: Operation, Management and Development Agreement between
Airports Authority of India and Delhi International Airport, 2006 (brownfield)
• Mumbai, India: Operation, Management and Development Agreement
between Airports Authority of India and Mumbai International Airport, 2006
(brownfield)
• Hyderabad draft concession agreement, India: Concession Agreement for
the Development, Construction, Operation and Maintenance of the
Hyderabad International Airport between Ministry of Civil Aviation,
Government of India and Hyderabad International Airport, 2004 (greenfield)
Examples
Contrato de Concesión de los Ferrocarriles
del Sur y Sur Oriente
• Concession agreement between Peruvian state and a private entity
(Ferrocaril Transandino S.A. - FTSA) regarding the southern
(Matarani/Mollendo to Cusco) and the southeastern (Cusco to Machu
Pichu) railway lines.
• The conceding authority transfers the right to use fixed assets and
rolling stock for passenger and freight services to the concessionaire.
• Main obligations of the concessionaire include the upgrading and
rehabilitation of the railway infrastructure (including signaling and
telecommunication systems), rehabilitation of rolling stock, and
improvement of the operational performance.
El Ferrocarril del Sur y Sur Oriente
Map of the railway network

Build, operate & transfer

  • 1.
  • 2.
  • 3.
    Features • The privatebusiness builds and operates the public facility for an agreed period of time. • Once the facility is operational as agreed, or at the end of the time period, the private entity transfers the facility ownership to the public, here it may be construed as Government.
  • 4.
    Top 10 activestates in PPP
  • 5.
    Examples Airports The Government ofIndia has developed airports in several cities on a PPP basis: • Delhi, India: Operation, Management and Development Agreement between Airports Authority of India and Delhi International Airport, 2006 (brownfield) • Mumbai, India: Operation, Management and Development Agreement between Airports Authority of India and Mumbai International Airport, 2006 (brownfield) • Hyderabad draft concession agreement, India: Concession Agreement for the Development, Construction, Operation and Maintenance of the Hyderabad International Airport between Ministry of Civil Aviation, Government of India and Hyderabad International Airport, 2004 (greenfield)
  • 6.
    Examples Contrato de Concesiónde los Ferrocarriles del Sur y Sur Oriente • Concession agreement between Peruvian state and a private entity (Ferrocaril Transandino S.A. - FTSA) regarding the southern (Matarani/Mollendo to Cusco) and the southeastern (Cusco to Machu Pichu) railway lines. • The conceding authority transfers the right to use fixed assets and rolling stock for passenger and freight services to the concessionaire. • Main obligations of the concessionaire include the upgrading and rehabilitation of the railway infrastructure (including signaling and telecommunication systems), rehabilitation of rolling stock, and improvement of the operational performance.
  • 7.
    El Ferrocarril delSur y Sur Oriente Map of the railway network