The Build-Operate-Transfer (BOT) model is a business model in which the financing, construction, operation and maintenance of infrastructure projects are carried out by transferring them to the private sector. In this model, private sector firms or consortia finance an infrastructure project, build it, operate it for a certain period of time, and then hand over the project to the public institution. The legal infrastructure of the BOT model regulates project financing, risk distribution, handover processes and other details. When we examine the Build-Operate-Transfer model in detail, we pay attention to the following points:
1. Stages of the Build-Operate-Transfer (BOT) Model:
- Build Phase: In the first stage, the private sector firm or consortium builds the infrastructure project. At this stage, the costs and the construction process are undertaken by the companies.
- Operate Phase: After the construction is completed, the private sector operates the project area for a certain period of time. During the operation, the revenues usually belong to the company operating the project and investment costs are covered with these revenues.
- Transfer Phase: At the end of a certain operational period, the project is transferred to the public institution. In this process, the private sector firm that owns the project delivers the infrastructure to the public institution that operates it.
2. Legal Infrastructure of the Build-Operate-Transfer Model
- Agreement: For the BOT model, a detailed contract is made between the parties. This contract regulates the financing, construction, operation and handover processes. In addition, how the risks will be shared, the responsibilities of the parties and other details are determined.
- Financing: The private sector firm or consortium undertakes the financing of the project. This financing includes construction costs, operating income and return on investment.
- Operating Time: The project is operated by the private sector for a certain operational period. In this process, the private sector obtains the revenues of the project and performs the maintenance and repair operations.
- Risk Distribution: The contract specifies the risks that may arise during the financing, construction, operation and maintenance of the project and how they will be shared. For example, construction risks, operational risks.
- Handover: At the end of the operational period, the project is transferred to the public institution. At this stage, all activities, assets and responsibilities pass to the public agency.
- Public Audit: Public control and regulation are important in projects where the BOT model is applied. The public institution monitors the operational process of the project and makes adjustments when necessary.
3. Advantages and Disadvantages
- Advantages: There may be advantages such as private sector financing, realization of rapid projects, technical knowledge and experience coming from the private sector.
- Disadvantages: There are also risks such as the privatization of public services and the transfer of revenues to the private sector, and disadvantages such as difficulty in public auditing.
The Build-Operate-Transfer model can be an effective method in financing and realizing infrastructure projects. However, it is important that projects are designed correctly, contracts are detailed and public scrutiny is ensured effectively. Each country's legal regulations and implementation may be different.
