A Build-Operate-Transfer (BOT) contract is a model used to finance large projects, usually infrastructure projects, developed through a public-private partnership.
BOT projects are usually large scale greenfield infrastructure projects that would otherwise be financed, built and operated exclusively by the government.
Under a Build-Operate-Transfer (BOT) contract, an organization—usually the government—grants a private company a concession to finance, build, and operate a project for a period of 20 to 30 years in the hope of making a profit. .
After this period, the project is returned to the state entity that originally granted the concession.
The term “discount rate” can refer to either the interest rate the Federal Reserve charges banks for short-term loans or the rate used to discount future cash flows in a discounted cash flow (DCF) analysis.