Daily Point 2245 - BOOT (Build, Own, Operate, Transfer)

 

The Banking Tutor 

Daily Point 2245 

BOOT (Build, Own, Operate, Transfer) 

BOOT is a PPP Project model in which the public-sector partner may provide limited funding or some other benefit (such as tax exempt status) but the private-sector partner assumes the risks associated with planning, constructing, operating and maintaining the project for a specified time period. 

During that time, the developer charges customers who use the infrastructure that's been built to realize a profit. At the end of the specified period, the private-sector partner transfers ownership to the funding organization, either freely or for an amount stipulated in the original contract. Such contracts are typically long-term and may extend to 40 or more years.

 

Sekhar Pariti

+91 9440641014