BUILD-OPERATE-TRANSFER generally termed as “BOT” is a public-private partnership relating to the development, augmentation and raising of infra structure projects. In most of the mixed economy like India construction of highways, tunnels and bridges, power generation plants, water & sewer systems, airports, ports, public buildings, irrigation projects, commercial complexes, etc; is outsourced by a Government to a private sector firm of contractors/builders/developers having technical expertise and experience and financial competency.
Under BOT arrangement, the private sector designs, finances, constructs and operates the project and eventually, after a specified concession period, the ownership of such project is transferred to the State
Law firm entrusted with the preparation of BOT contract has to address inter alia the following issues:
- The length of the concession period; the starting date.
- The structure of the project company.
- The financial scheme.
- The financial guarantees.
- The material guarantees.
- The financial ceiling of development costs.
- The financial ceiling of usage costs.
- The construction process.
- Specifications and Operating Parameters The completion time of the construction.
- The method of operating the project.
- Project implementation
- Design & Construction
- Construction Timetable
- Transfer of Ownership
- Force Majeure
- Change in Circumstances
- Benefit of Agreement
- Dispute Resolution
- Compliances of environmental laws affecting BOT