BuildOwnOperateTransfer
Build-Own-Operate (BOO) is a project delivery and financing model used primarily in infrastructure and energy sectors, where a private entity designs, builds, funds, owns, and operates a facility for a defined period. Under a BOO arrangement, the public authority typically pays for outputs or services rather than owning the asset, and ownership remains with the private sponsor for the concession term. The contract specifies performance standards, maintenance requirements, and payment mechanisms tied to availability or service levels.
Key characteristics of BOO include long-term commitments, risk transfer to the private operator for construction and
BOO differs from Build-Own-Operate-Transfer (BOOT) and related models, where ownership or control may transfer to the
Applications for BOO span energy generation, water and wastewater facilities, waste management plants, and certain transportation