What is a BOT project?

Official interpretation: BOT is called "Build-Operate-Transfer", which is a way of infrastructure investment, construction and operation.

A simple understanding is that the government chartered social capital to build and operate a project, and the investors spent money on the construction, and then handed it over to the government after the operation made money.

2. Operation mode of 2.BOT

First of all, the government and private institutions reached an agreement to grant concessions, allowing them to build infrastructure and manage and operate the facility and its corresponding products and services within a certain period of time.

Then non-governmental organizations raise funds from social capital and financial institutions for formal construction and operation. During this period, the government can limit the quantity and price of public goods or services provided by the institution, but it must ensure that private capital has the opportunity to make profits.

Finally, at the end of the concession period, the private institution will hand over the facilities to the government department as agreed, and the government will designate the operation and management of the department.