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Build Operate Transfer Model

Kumari Sonali

Build Operate Transfer Model:

For new projects, NHAI will prefer the build-operate-transfer model

  • Under the BOT model, a private player will finance, build and operate a project for a period of time (20 or 30-year period).
  • The developers will be recouping the investments by way of user charges or tolls charged from customers using the facility.
  • The BOT (toll) model was the preferred model for road projects, accounting for 96% of all projects awarded in 2011-12.
  • But this progressively reduced to nil.
  • When the private company didn’t had incentives post-2011, the government shifted to the EPC and HAM models to plug the funding gap.
  • The return to BOT could be a big positive for the sector.

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