BOT (Build-Operate-Transfer) Contracts

A Build-Operate-Transfer (BOT) contract is an arrangement where a private company is hired to design, finance, and construct a project—like a highway, power plant, or water system. The company then operates the facility for a certain period to recover its investment and earn profits. After this phase, the ownership and operation are transferred to the government or a public agency. This model helps governments develop infrastructure without upfront costs, leveraging private expertise and investment, with the goal of providing public services efficiently while eventually transferring full control to the public sector.