BOT Contracts to Finance Rail Projects

EghtesadOnline: Ministry of Roads and Urban Development’s Advisor Gholamreza Salami said new Iranian railroads, including the one linking Chabahar to Zahedan, will be financed under Build-Operate-Transfer contracts, IRNA reported.

News ID: ۷۴۴۳۷۸

11 November 2017

A BOT contract is a model used to finance large projects, typically infrastructure projects developed through public-private partnerships. Under a BOT contract, an entity, usually a government, grants a concession to a private company to finance, build and operate a project. The company operates the project for a period of time with the goal of recouping its investment, before transferring the project to the government. BOT projects are normally large-scale, greenfield infrastructure projects that would otherwise be financed, built and operated solely by the government, according to Financial Tribune.