B.O.T / B.O.O Consultancy
A BOT Project (build operate transfer project) typically sees the installer / designer (in this case, Pioneer Environmental) bearing the cost of the building / installation of the infrastructure project – then receiving a management fee for a set period before transferring ownership across to the client.
This type of project is typically used to develop a discrete asset rather than a whole network and is generally entirely new or greenfield in nature
In general – BOT projects work best in a number of areas – but in particular the most common are
a) They transfer the cost to a later time period: the builder bears the cost of the initial setup, with fee revenue starting later on – typically when other parts of a development are generating income (or receiving other revenues)
b) They reduce risk – as there is no ownership till the overall project is completed a BOT project can reduce both political risk, and also cut down on risk for poor installation.
c) They free the owner to focus on their area of expertise – as the installer / expert operates – the client doesn’t have to worry about building expertise in this area.