2.1 Contractual Arrangements - refer to any of the contractual arrangements or schemes enumerated under RA 7718, as well as other variations thereof as may be approved/authorized by the President, by which infrastructure and/or development projects may be undertaken pursuant to the provisions of the BOT Law and its IRR but not limited to the following schemes:
a. Build-lease-and transfer - a contractual arrangement whereby a project proponent 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;
b. Build-own-and operate - a contractual arrangement whereby a project proponent is authorized to finance, construct, own. operate and maintain an infrastructure or development facility from which the proponent 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. Under this project, the proponent which owns the assets of the facility may assign its operation and maintenance lo a facility operator;
c. Build-operate-and-transfer - a contractual arrangement whereby the project proponent undertakes the construction, including financing, of a given infrastructure facility, and the operation maintenance thereof. The project proponent operates the facility over a fixed term during which it is allowed to charge facility users appropriate tolls, fees, rentals and charges not exceeding those proposed in its bid or us negotiated and incorporated in the contract to enable the project proponent to recover its investment, and operating and maintenance expenses of the project.
2.2 Agency - refers to any of the various units of the Government, including department, bureau, office, instrumentality, or government-owned or controlled corporation, or a local government or a distinct unit therein.
2.3 Authorized Government Depository Bank (AGDB) – refers to a government bank duly authorized to maintain deposits and cash balances of local government units, national implementing agencies and government-owned and controlled corporations as authorized by the Bangko Sentral ng Pilipinas.
2.4 Billing Period - refers to the interval period specified in the contract that the project Proponent shall receive payment for the use of the facility;
2.5 Contract - refers to the legal instrument awarded by the Agency/LGU whereby the Proponent shall undertake the financing, construction, operation and maintenance of the infrastructure or development project concerned. The contract defines the legal and basic relationship between the Principals and their rights and responsibilities;
2.6 Escrow Account – refers to the facility opened by the agency together with the facility operator in an AGDB that shall hold deposits representing the revenue funds of the infrastructure or development project to he remitted to the project proponent/facility operator and to the National Treasury, if any;
2.7 Facility Operator - refers to a company responsible for all aspects of operation and maintenance of the infrastructure or development facility, excluding the collection of tolls, fees, rentals or charges from facility users;
2.8 Invoice - refers to the billing statement from the project proponent/facility operator based on the number of transactions with the facility users of the infrastructure or development project during the corresponding Billing Period;
2.9 Project Proponent - refers to the private sector entity responsible for the construction of the project;
2.10 Revenues - refer to the tolls, fees, charges, rentals and other receipts arising from the use of the facility.