Corporate financing
BOT is the abbreviation of BUILD-Operate-TRANSFER, which means "construction operation transfer" in English. The so-called BOT financing refers to the signing of a concession agreement between the government and the project company of a private consortium, in which the project company raises funds and constructs public infrastructure. The project company owns and operates the project facilities during the franchise period, collects service fees to recover investment, repay loans, and obtain reasonable profits. After the franchise period expires, the project will be transferred to the government free of charge.
In BOT financing, losses may occur in the four stages of franchising, construction, operation, and transfer. Therefore, it is particularly important to hire professional financing consultants to analyze and evaluate risks in advance, choose appropriate ways to avoid risks, and ensure the normal operation of the project.