Page 67 - BASIC PRINCIPLES OF QUANTITY SURVEYING PROFESSIONAL PRACTICES

Politeknik Kota Bharu

Figure 3.2: Turnkey project structure

3.4.2.4 Built, Operate & Transfer (BOT)

• The BOT system refers to a public institution, such as a local

government, granting a private enterprise the initial
concession to build and operate a project. The project is

returned to the public entity after a predetermined period,
usually 20 or 30 years.

• BOT is commonly used in infrastructure projects and public-
private partnerships. A first party (government) delegated the

design and construction of infrastructure, as well as the
operation and maintenance of these facilities, to a second

party (private firm) under the BOT framework.

• During this time, the private company is responsible for

collecting project funds and is entitled to keep all project

income; they are also the building's owner.

• At the end of the concession agreement, the facility will be

transferred to the building owner.

• The project structure is illustrated by Figure 3.3.

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