Question

why would a government choose BOT project over BOOT project

Answer 1

BOT stands for build operate and transfer.

BOOT stands for build, own, operate and transfer.

This both methods are public private partnership methods of concessions.

BOT method over BOOT method is considered by the government because-

A. This will not be providing the ownership and hence it will better from the control perspective of the government

B.the private corporation has to generate his own finance or the government will finance it in the form of the annuity.

C. It is a more simple approach and less complex approach because there is no transfer of the ownership and it will not be leading into payment of any kind of monthly or yearly fees during the operational period

D. Risk is majorly taken by the private partner and it is the sole entity entitled for management of risks soso government will escape itself from risk management.