Bto Agreement


    The BOT and BTO agreements are often an integral part of concession agreements. The difference between these models is when the operator transfers the newly created assets to the port authority. BTOs are used when the legislation does not allow private ownership of port facilities. The transfer takes place immediately after the completion of the work and the operator receives the equivalent of a management contract. Operators under a BOT agreement run a significant risk that existing legislation will evolve during the concession phase. Such a change may affect operating profits and alter or deny the original terms of use. It can therefore be expected that detailed provisions of the concession contract will be negotiated to minimize the impact of these changes (see Box 70). On the day you sign the lease, you must pay the down payment as well as stamp fees and legal fees. You may also be eligible for the staggered payment system. As the name suggests, you can pay half the down payment if you sign your lease, and the other half if you sign the terms and get your keys back. 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. The facility is then transferred to the public administration at the end of the concession contract,[4] without remuneration from the private entity concerned. Some, if not all, of the following parts could be involved in any BOT project: most concessions have a duration of 30 years or more. The extension of the concession can normally be renegotiated at any time during its lifetime when the operator plans to invest more in port infrastructure in exchange for an appropriate tariff reflecting changes that may have been introduced as part of the extension. In the absence of an agreement on the extension before the end of the 30-year period, the concession will end and the right to use and use port infrastructure and other assets will be referred to the port authority (or any other government authority), preferably on a fixed-price formula.