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The Public Private partnership (ppp) models are a popular way for governments to involve private investment, expertise and risk in procuring infrastructure, with the potential to deliver a project more efficiently and economically. One of the most popular PPP models for procuring infrastructure projects is Build Operate Transfer (BOT). The details of a BOT model vary depending upon the nature of the project. Generally speaking, a BOT involves the following:

1. •

   a government (in the form of a government body or local authority) requires new public infrastructure facility, such as a road or energy facility

2. •

   typically a consortium of private entities (often including financers, construction contractors and O&M contractors) forms a special purpose entity (often called Project Co)

3. •

   Project Co and the government enter into a concession agreement, which sets out the terms upon which it will procure and operate the facility and be entitled to revenues

4. •

   Project Co:

   1. â—¦

      obtains finance for the project

   2. â—¦

      procures the design and construction