BOT Vs Concession

Question 1

Government authority grants a private entity the right to operate specific infrastructure project or service for a defined period

Answer 1

Concession

Question 2

Private entity is granted a concession to finance, design, construct, and operate a public infrastructure project for a specified period

Answer 2

BOT

Question 3

Private entity is responsible for funding the construction of the project and assumes the risks associated with its operation and maintenance

Answer 3

BOT

Question 4

Private entity typically bears the financial risks associated with the project, including construction, operation, and maintenance cost

Answer 4

Concession

Question 5

Revenue is often generated thru user fees, tolls, or other changes paid by the users of the infrastructure

Answer 5

Concession

Question 6

Private entity typically has the right to collect revenue directly from users during the concession period

Answer 6

BOT

Question 7

At the end of the concession period, the ownership of the infrastructure usually reverts to the government entity

Answer 7

Concession

Question 8

Ownership transfers to the government entity without any additional payment

Answer 8

BOT

Question 9

The private entity build and operates the infrastructure temporarily before transferring ownership

Answer 9

BOT