Boot Agreement

Under a concession, the private sector partner could also sell directly to public users, without the need for a state mediator. The BOT agreement often sets the minimum and maximum prices that a customer can pay. THE BOT is widely used in infrastructure projects and public-private partnerships. Under the BOT, a third party, for example public administration. B, delegated to a private organization to design and build infrastructure and operate and maintain these facilities for a period of time. During this period, the private party is responsible for financing the project and is authorized to retain all revenues generated by the project and owns the entities under consideration. The facility is then transferred to the public administration at the end of the concession contract,[4] without remuneration from the private entity concerned. Some, if not all, of the following parts could be involved in any BOT project: the contracts for the purchase of electricity in which a state-owned supply company acts as a buyer and buys electricity from a private facility are an example of this agreement. Under a traditional concession, the company would sell directly to consumers without government intermediaries. BOT agreements often set minimum prices that the buyer must pay. The BOT model refers to a construction, operating and transfer project model.

In the case of a plant built on the basis of a BOT project model, the government may enter into an electricity purchase agreement in which a government agency acts as a purchaser or a person who purchases goods or services. In this case, the customer buys electricity from the facility built and privately owned. A BOT project is generally used for the development of a discrete asset and not an entire network, and it is generally completely new or in the green meadow (although it is a remediation). 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. A number of projects are called concessions, such as toll road projects. B that are under construction and have a number of similarities to THE BOAs. [4] In contract theory, several authors have examined the pros and cons of pooling the construction and operation phases of infrastructure projects. In particular, Mr. Hart (2003) used the incomplete approach to public procurement to determine whether incentives for non-contract investments are smaller or larger when the different phases of the project are grouped under a single private contractor.

[8] Hart (2003) argues that incentives to pool cost-cutting investments are greater than dissociation.