According to BusinessDictionary, a Build-Operate transfer contract has two parties – a private company and a government agency. And here is an agreement between them, in which a private company is required to create and operate a facility for a certain period of time, and then transfer ownership to the second party. In some cases, there is no transfer and the government authority is the only buyer. Thus, the Build-Operate transfer agreement works both in huge intergovernmental agreements and between small parties. But what makes interaction in Build-Operate transfer projects so beneficial and why is this form so comfortable and simple for companies and other parties to the process? Let`s talk about it in more detail and look at it in one particular example. An example of this agreement is power purchase agreements in which a public distribution company is a lowerer and saves electricity from a private facility. Under a traditional concession, the company would sell directly to consumers without a public intermediary. BOT agreements often provide for minimum prices to be paid by the abneagnant. A large number of BOT port and road projects have been implemented in the region. The Nhava Sheva International Container Terminal (NSICT) is an interesting example of improving efficiency through a BOT project in the port sector.
In 1997, the Jawaharlal Nehru Port Trust (JNPT), India, signed an agreement with a consortium led by P&O Australia for the development of a BOT-based twin-bed container terminal for 30 years, at a price of $200 million. P&O closed the project before the dementia date and began operating at the new terminal in 1999. From the first year of operation, the terminal handled much more traffic than expected. Private participation has also generated impressive efficiencies. Efficiency indicators such as average ship transhipment time and performance per day from port to terminal were comparable to other effectively managed ports in the region. In 2003/2004, the average transhipment time for ships and containers was 2.04 and 1.84 days respectively, well above the corresponding indicators for other comparable terminals in the public sector. Bot is widely used in infrastructure projects and public-private partnerships. In the context of BOT, a third party, for example. B the public administration, delegates to a private sector body to design and build infrastructure and to operate and maintain such facilities for a certain period of time.
During this period, the private party is responsible for financing the project and is entitled to withhold all the revenue generated by the project and owns the entities concerned. . . .