BOT is build-operate-transfer. It is way of private corporation participate the infrastructure construction and provide public service to society.
China generally refers to “concession rights”, which refers to the fact that government agencies sign a concession agreement with a private company (project company) for an infrastructure project, and grant the contracting party’s private company (including foreign companies) to undertake the investment of the project, financing, construction, and maintenance, within the concession period specified in the agreement, permit them to finance the construction and operation of specific public infrastructure, and permit them to collect fees from household and sell products to repay loans, recover investment, and earn profits. The government has the right to supervise and control the infrastructure, and the concession period expires, the private enterprise of the contracting party transfers the infrastructure to the government department for free or for compensation. Advantage:
1,Save investment: for developers, BOT providing heat mode of best advantages lies saving the investment to boilers and other equipment, alleviate the pressure for equipment bidding, installation, construction, realize the most optical allocation for system and equipment.
2, Facilitate management: For the property management party, BOT can form the continuation of construction and operation, avoid the negative impact of heating, and convert the possibility of profit and loss from property management costs into predetermined quantitative indicators.
3.Owner experience: heating, sanitary hot water service shall provide to owner at regulate time and quality, and owner shall not pay the fee for maintenance equipment, the heating company shall transfer whole equipment to owner for free when the license period is expired.
4,Social benefit: maximize perfect system saving energy, avoiding energy waste.