Build Own Operate and Transfer (BOOT)

• BOOT (build, own, operate, transfer) is a public-private partnership (PPP) project model in which a private organization conducts a large development project under contract to a public-sector partner, such as a government agency.

• BOOT is sometimes known as BOT (build, own, transfer).

Key highlights

• In this model, the public-sector partner contracts with a private developer with specific expertise – to design and implement a large project.

• 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.

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Mains Paper 3: Economy

Prelims level: Build Own Operate and Transfer

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