Plants - BOO/BOT

The two main variants are the build-own-operate (BOO) and build-operate-transfer (BOT) contract structures.

 

Build Operate Transfer (BOT) is a form of project financing, wherein Hydrotech receives a concession mostly from a public sector to finance, design, construct, and operate a facility stated in the concession contract.

 

Due to the long-term nature of the arrangement, the fees are usually raised during the concession period. The rate of increase is often tied to a combination of internal and external variables.

 

Traditionally, such projects provide for the infrastructure to be transferred to the government at the end of the concession period. The private company hands over ownership of assets at the end of the concession.

 

With a BOO contract, Hydrotech is granted the right to develop, finance, design, build, own, operate, and maintain a project. Hydrotech owns the project outright and retains the operating revenue risk and all of the surplus operating revenue in perpetuity. Hydrotech retains ownership of asset permanently.

 

Hydrotech has entered in the BOO and BOT market in Egypt and focuses also on the Turkish BOT and BOO water treatment and desalination market.