BOT Contracts

Build-Own-Operate-Transfer (BOOT) is a form of project financing, wherein a private entity receives a
concession from the private or public sector to finance, design, construct, and operate a facility stated in the
concession contract. This enables the project proponent to recover its investment, operating and maintenance
expenses in the project.
Due to the long-term nature of the arrangement, the fees are usually raised during the concession period. The
rate of increase is often tied to a combination of internal and external variables, allowing the proponent to
reach a satisfactory internal rate of return for its investment.