Build Own Operate Transfer Agreement Template

There are a number of variations of the basic BOT model. Under boot contracts (transfer of Build-Own-Operate), the contractor owns the project for the duration of the project. Under Build-Lease (BLT) lease transfer agreements, the government leases the project to the contractor for the duration of the project and operates it. Other variants both designed the contractor and built the project. An example is a DBOT contract (transfer of design construction operations). A Build-Operate Transfer Agreement (BOT) is a model for financing large projects, usually infrastructure projects developed by public-private partnerships. Infrastructure projects usually require a lot of contracts. Each contract attests to an internal allocation of the underlying risks between the contracting parties. There are a large number of problems that will arise when negotiating contracts for an infrastructure project. Most of the problems that will arise arise in the purchase agreement. Many of these problems will also arise in the other project documents.

In contract theory, several authors have studied the advantages and disadvantages of pooling the construction and operation phases of infrastructure projects. In particular, Oliver Hart (2003) used the incomplete procurement approach to determine whether incentives for non-contractual investments are smaller or greater when the different phases of the project are grouped into a single private contractor. [8] Hart (2003) argues that by bundling, incentives for cost reduction are greater than in unbundling. However, incentives to reduce costs can sometimes be excessive, as they lead to high-quality achievements, so whether pooling or unbundling is optimal depends on the details of the project. Harts (2003) work has been extended in many directions. [9] [10] For example, Bennett and Iossa (2006) and Martimort and Pouyet (2008) study the interaction between pooling and property rights,[11][12], while Hoppe and Schmitz (2013, 2020) investigate the implications of pooling for innovation. [13] [14] For many infrastructure projects, the country on which the infrastructure is to be built is leased on a long-term basis (up to 30 years). This can give the government agency increased control over the site.

It also ensures that the site`s rehabilitation potential is not transferred to sponsors….


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