BOT Agreement Clause Samples

A BOT (Build-Operate-Transfer) Agreement is a contractual arrangement where one party (typically a private entity) agrees to finance, construct, and operate a project or facility for a specified period before transferring ownership to another party, usually a government or public authority. During the operation phase, the private entity may recover its investment and earn profits through user fees or other revenue streams. This clause outlines the responsibilities, timelines, and conditions for each phase—building, operating, and transferring—ensuring that both parties understand their obligations. Its core function is to facilitate large infrastructure projects by leveraging private sector expertise and capital while ultimately returning the asset to public ownership.