BOT vs Concession Agreement

Question 1

In a concession contract, a government authority grants a private entity the right to operate a specific infrastructure project or service for a defined period.

Answer 1

Concession Contract

Question 2

The private entity typically bears the financial risks associated with the project, including construction, operation, and maintenance costs

Answer 2

Concession Contract

Question 3

Revenue is often generated through user fees, tolls, or other charges paid by users of the infrastructure.

Answer 3

Concession Contract

Question 4

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

Answer 4

Concession Contract

Question 5

In a concession contract, ownership of the infrastructure usually remains with the government throughout the concession period. The private entity operates the infrastructure but does not own it.

Answer 5

Concession Contract

Question 6

Revenue generated in a concession contract often comes from user fees, tolls, or other charges paid by users of the infrastructure. The private entity may collect these revenues during the concession period.

Answer 6

Concession Contract

Question 7

In a BOT arrangement, the private entity usually has the right to collect revenue directly from users of the infrastructure during the concession period, which helps recoup their investment in the project

Answer 7

Build-Operate-Transfer(BOT)

Question 8

Ownership of the infrastructure typically transfers to the government at the end of the concession period, often without any additional payment. The private entity builds and operates the infrastructure temporarily before transferring ownership.

Answer 8

Build-Operate-Transfer(BOT)

Question 9

At the end of the concession period, ownership of the infrastructure typically transfers to the government entity without any additional payment.

Answer 9

Build-Operate-Transfer(BOT)

Question 10

Unlike a concession contract, the private entity typically has the right to collect revenue directly from users during the concession period.

Answer 10

Build-Operate-Transfer(BOT)

Question 11

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

Answer 11

Build-Operate-Transfer(BOT)

Question 12

In a BOT arrangement, a private entity is granted a concession to finance, design, construct, and operate a public infrastructure project for a specified period.

Answer 12

Build-Operate-Transfer(BOT)