1, the meaning of BOT
Official definition: BOT is known as Build-Operate-Transfer, that is, "Build-Operate-Transfer" is a way of infrastructure investment, construction and operation. -Transfer", is a way of infrastructure investment, construction and operation.
Simple to understand is: the government licenses social capital to build and operate a project, and so the investor spends money to build a good, profitable operation and then transferred to the government.
2, BOT mode of operation
First of all, the government and the private sector to reach an agreement between the promulgation of concessions to allow the construction of a certain period of time to build a certain infrastructure and management and operation of the facility and its corresponding products and services.
The private organization then raises funds from social capital and financial institutions to formally construct and operate the facility. During this period, the government may impose restrictions on the quantity and price of the public **** product or service provided by the organization, but it needs to ensure that the private capital has the opportunity to make a profit.
Finally, at the end of the concession period, the private organization transfers the facility to a government department as agreed, and transfers it to a government-appointed department for operation and management.