The UN ESCAP informs us that the fundamental characteristics of the construction company transfer model are an agreement between the parties, a fixed deadline for the execution of the commitments and the return of the assets after the termination of the undertaking. In another list of the main features of the World PPP Bank, there is: According to BusinessDictionary, a construction plant transfer contract has two parts – a private company and a government agency. And here is an agreement between them, in which a private company is required to create and operate an establishment for a while and then transfer the property to the second part. In some cases, there is no transfer and the government agency is the sole buyer. Thus, an agreement on the transfer of construction and exploitation works in large intergovernmental agreements as well as between minor parties. But what makes interaction in construction transfer projects so beneficial and why is it convenient and easy for businesses and all other participants in the process? Let`s talk about it in detail and consider it in a particular example. Many BOT port and road projects have been carried out in the region. The Nhava Sheva International Container Terminal (NSICT) is an interesting example of efficiency gains through a BOT project in the port sector. In 1997, the Jawaharlal Nehru Port Trust (JNPT), India, signed an agreement with a consortium led by P-O Australia to develop a two-bed container terminal on the BOT base for 30 years, at a cost of $200 million. The project was completed as planned and began operating on the new terminal in 1999. In the first year of operation, the terminal was much more traffic than expected. Private participation has also resulted in impressive efficiency gains.
Efficiency indicators such as average vessel transit times and port day performance at the terminal were comparable to other ports in the region that operate efficiently. In 2003/2004, the average transit time for ships and containers was 2.04 and 1.84 days, well above the corresponding indicators for other comparable terminals in the public sector. The Bangkok Mass Transit Public (BTS) transit system, Bangkok`s high-speed train system, is an example of the BOT project. The project was implemented as part of a 30-year BOT concession agreement between the dealership and the Bangkok Metropolitan Authority (City Government). A Construction Transaction Transfer (BOT) is an agreement under which an investor commits to build, finance and exploit a certain infrastructure value (e.g. airport. B, port, power plant, water distribution, etc.) for a specified period of time before transferring the value of the infrastructure to the government. The duration of such an agreement is generally long enough for the investor to re-take back the investment costs associated with building the infrastructure by applying a tariff or user fee during the period during which he operates the infrastructure. An example of this agreement is the contracts in which a state-owned supply company acts as a buyer and purchases electricity from a private facility. 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 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.