An arrangement in which the private sector builds an infrastructure project, operates it and transfers the ownership of the project to the government after the contractual period is called
- ABLT : Build, Lease, Transfer
- BBTO: Build, Transfer, Operate
- CBOOT: Build, Own, Operate, Transfer
- DBOT: Build, Operate, TransferCorrect
Solution
Concept
Concession models in public private partnerships
Formula
NONE
Step-by-step solution
1. Infrastructure project delivery involves various public-private partnership models. 2. Contracts define the sequence of building, operating, leasing, and transferring ownership. Answer: D
Explanation
Under a Build, Operate, Transfer scheme, a private entity constructs an infrastructure project, operates it for a designated concession period to recover costs, and then transfers ownership to the government. This public-private partnership model allows governments to fund major projects using private capital. Therefore, option D correctly describes this arrangement.
Why the other options are wrong
B) BTO involves transferring ownership before operation begins. C) BOOT includes ownership by the private entity during the concession period.
Shortcut
Order of sequence: Build, Operate, Transfer = BOT.
Common mistake
Confusing BOT with BOOT by assuming private ownership is granted during the contract period rather than pure operational control.
Correct answer: D) BOT: Build, Operate, Transfer