PPP Contractual Arrangements
PPP Modality Role of the Private Sector Role of the Government
Build-Operate-and- Finances and constructs;
Transfer (BOT) operates and maintains
facility for a fixed term;
collects fees and charges
to recover investments
plus profit; transfers
facility at the end of
cooperation period
(maximum of 50 years).
Build-and-Transfer Finances and constructs;
(BT) turns over ownership of
the facility to
government after
project completion.
Build-Own-and- Finances, constructs and
Operate owns facility; operates
(BOO) and maintains facility in
perpetuity (facility
operator may be
assigned); collects fees
and charges to recover
investments and profits.
Build-Lease-and- Finances and constructs;
Transfer (BLT) turns over project after
completion; transfers
ownership of facility
after cooperation/lease
period.
Source: The Philippine Amended BOT Law and its Revised Implementing Rules and Regulations (IRR), 2012
Notes
Provides franchise (if Includes a
required) and supply-and-operate
regulates activities of scheme, a contractual
BOT contractor; arrangement whereby
acquires ownership of the supplier of
facilities at the end of equipment and
cooperation period. machinery for a given
infrastructure facility, if
the interest of the
Government so
requires, operates the
facility.
Acquires ownership of May be employed in
facility after any project, including
construction; critical facilities which,
compensates for security or strategic
proponent at agreed reasons, must be
amortization schedule. operated by the
Government.
Provides authorization All BOO projects upon
and assistance in recommendation of the
securing approval of NEDA-Investment
BOO contract; Coordination
possesses the option Committee (ICC) shall
to buy the be approved by the
output/service President of the
provided by the BOO Philippines.
operator.
Compensates
proponent by way of
lease of facility at
agreed term and
schedule; owns facility
after
cooperation/lease
period.
PPP Contractual Arrangements
Build-Transfer-and- Finances and constructs
Operate (BTO) on a turn-key basis;
transfers title of facility
after commissioning;
operates the facility
under an agreement.
Contract-Add-and- Adds to an existing
Operate (CAO) facility; operates
expanded project for an
agreed franchise period.
Develop-Operate- Builds and operates a
and- Transfer new infrastructure;
(DOT) transfers property/
facility at the end of the
cooperation period.
Rehabilitate- Refurbishes, operates,
Operate and- and maintains facility;
Transfer (ROT) facility is turned over
after the franchise
period.
Rehabilitate- Refurbishes and owns
Own and- facility; operates facility
Operate in perpetuity as long as
(ROO) there is no franchise
violation.
Source: The Philippine Amended BOT Law and its Revised Implementing Rules and Regulations (IRR), 2012
Owns facility after
commissioning.
Collects rental There may or may not
payment under agreed be a transfer
terms and schedule; arrangement with
regains control at the regard to the added
end of lease term. facility provided by the
project proponent.
Regains possession of Project proponent
property turned over enjoys some benefits
to investor after the initial investment
cooperation period. creates such as higher
property or rent values;
akin to BOT with the
option to develop
adjoining property.
Provides franchise to Also used to describe
ROT company; regains the purchase of facility
legal title of property/ from abroad,
facility after franchise importing, refurbishing,
period. erecting and consuming
it within the host
country.
Turns over facility and Period to operate is
provides franchise to dependent on franchise
operate; may opt to agreement.
share in the income of
ROO company.