DBFOT

DBFOT stands for Design-Build-Finance-Operate-Transfer, a project delivery model used in public-private partnerships to deliver infrastructure. In a DBFOT arrangement, a private sector consortium is responsible for the complete lifecycle of a project: designing, building, financing, operating, and maintaining it for a defined concession period, after which the asset is transferred to the public sector in an operational state.

Applications and scope include roads and highways, airports, rail facilities, water and wastewater plants, and other large-scale infrastructure. The private partner bears the capital expenditure and arranges financing; the public authority sets performance standards through a concession agreement. Revenue streams typically include user fees or tolls, availability payments from the government, or a combination, with payments conditioned on meeting technical and service standards.

Term and transfer arrangements commonly set concession periods ranging from 15 to 30 years, depending on project size and lifecycle costs. At expiration, control and ownership are transferred to the government, often with a transition period and warranties to address any remaining maintenance needs.

Risk and governance focus on allocating design, construction, and operating risks to the private partner in exchange for performance-based payments. Public sector oversight enforces compliance with safety, environmental, and regulatory requirements, and contract terms define remedies for underperformance and potential termination.

Benefits of DBFOT include accelerated delivery, access to private capital, and long-term lifecycle maintenance. Critics point to potential long-term fiscal commitments, complexity, and the risk that user charges or availability payments may transfer costs to taxpayers. DBFOT is one of several PPP models used to mobilize private investment in infrastructure.