In Build-Operate-Transfer (BOT) arrangements and its variants, the concession or grant of rights by the government sponsor to the private secior proponent generally consists of two (2) basic privileges: (1) the right to finance, design, construct, manage, operate and rehabilitate a specific infrastructure facility that the government agency would have normally implemented on its own, and (2) the right to collect fees, charges, tolls or tariffs from the end-users of the facility to allow the proponent to recover its investment and gain a reasonable rate of return. These bundled rights form the concession, franchise or privilege given to the private sector project proponent.
There are cases, however, when the project proponent is legally constrained from directly collecting from the toll fees, charges and other revenues due from the BOT project operation. In these cases, the implementing agency serves as the conduit for the project proponent/facility operator to get paid.