Build-Operate-Transfer Contract

A build–operate transfer (BOT) contract is a type of public-private partnership where the contractor agrees to finance, build, and operate a large infrastructure project for a specific period of time.

At the end of that period, the project is turned over to a government entity. This could be for a water treatment facility, a new highway, or a power plant. Perhaps the government sponsoring the project doesn't have the funds at the present time to finance the project, so they allow the contractor to operate it until it's recouped its original investment. The contractor earns revenue by purchasing electricity, for example, and selling it to end consumers. Or the agreement might state the contractor will purchase electricity from the government at a minimum price.

So then...why would a Government entity not just build this thing on its own or by themselves? Well...think about how slowly, expensively, and oh so non-urgently the Government moves...versus an incentivized private industry entrepreneur.

Yeah. That's why this structure exists.