Concessions, construction transfer projects (BOOs) and DBO (design-build-operate) projects are types of production-oriented public-private partnerships. BOT and BOD projects generally include major projects and construction work, as well as long-term operations for new construction (green meadow) or major renovation and expansion projects (brown surfaces). See below for definitions of different types of agreements, as well as the main characteristics and examples of each. This page also contains links to checklists, toolkits and information on sectoral PPPs. Build-operate-transfer (BOT) is a method of project delivery, usually for large infrastructure projects in which a private organization receives a concession from the public sector (or private sector in rare cases) to finance, design, build, own and operate a device specified in the concession contract. In this way, the project proponent will be able to recover its investment, operating and maintenance costs in the project. Each project will have some modification of this contractual structure according to its specific requirements: not all BOT projects require a guaranteed supply of inputs, so it may not be necessary to conclude an agreement on the supply of fuels and requirements. The payment flow can be made in whole or in part by public rates and not by a buyer. A dealership gives a dealer the long-term right to use all property transferred to the dealership, including operational responsibility and certain investments. Ownership of the assets remains owned by the Authority and the Authority is generally responsible for the replacement of significant assets. Assets are reset to the authority at the end of the concession period, including assets acquired by the dealer.
In a dealership, the dealer generally receives most of its income directly from the consumer and therefore has a direct relationship with the consumer. A concession includes an entire infrastructure system (the dealer that supports existing assets, as well as the construction and operation of new assets). The dealer will pay a concession fee to the authority, which is generally protected and used for the exchange and extension of assets. A concession is a specific concept in civil law countries. To make things confusing, projects closer to BOT projects are called concessions in common law countries. A Build Operate Transfer (BOT) project is usually used to develop a discrete asset instead of an entire network and is generally completely new or on green ground (although remediation may be involved). Under a BOT project, the project company or operator typically generates revenue through a fee charged to the company or government, not through rates charged to consumers.