Build-operate-and-transfer

A contractual arrangement whereby the project company undertakes the construction, including financing, of a given infrastructure facility, and the operation maintenance thereof. The project company operates the facility over a fixed term during which it is allowed to charge facility users (customers) appropriate tolls, fees, rentals, and charges not exceeding those proposed in its bid or as negotiated and incorporated in the contract to enable the project company to recover its investment, and operating and maintenance expenses in the project. At the end of the fixed term, the project company transfers the facility to the government agency or local government unit concerned

Build-and-transfer

A contractual arrangement whereby the project company undertakes the financing and construction of a given infrastructure or development facility and upon completion turns it over to the government agency or local government unit concerned, which shall pay the company on an agreed schedule its total investments expended on the project, plus a reasonable rate of return thereon.

Build-own-and-operate

A contractual arrangement whereby a project company is authorized to finance, construct, own, operate and maintain an infrastructure or development facility from which it is allowed to recover its total investment, operating and maintenance costs plus a reasonable return thereon by collecting tolls, fees, rentals or other charges from facility users.

Build-lease-and-transfer

A contractual arrangement whereby a project company is authorized to finance and construct an infrastructure or development facility and upon its completion turns it over to the government agency or local government unit concerned on a lease arrangement for a fixed period after which ownership of the facility is automatically transferred to the government agency or local government unit concerned.

Build-transfer-and-operate

A contractual arrangement whereby the public sector contracts out the building of an infrastructure facility to a private entity such that the contractor builds the facility on a turn-key basis, assuming cost overrun, delay and specified performance risks. Once the facility is commissioned satisfactorily, title is transferred to the implementing agency/LGU. The private entity, however, operates the facility on behalf of the implementing agency/LGU under an agreement.

Rehabilitate-operate-and-transfer

A contractual arrangement whereby an existing facility is turned over to the private sector to refurbish, operate and maintain for a franchise period, at the expiry of which the legal title to the facility is turned over to the government.

Finance Only6

A contractual agreement entitling a private entity to fund a project directly or using various mechanisms such as a long-term lease or bond issue.