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9 月

Build Own Operate Transfer Agreement Sample

If the government authority requires secondary guarantees, it will require the approval of the financiers to take back these securities together with an agreement with the financiers on the order of execution of the securities and the corresponding priorities. It is likely that financiers will want the first priority for all their debts and the first right to the application of securities; If, for this reason, the Developer is an Assignment Agent with no assets and no ability to process claims for more time or more money on the part of the Contractor and if, for the above reasons, the Government is generally unwilling to accept the risk of additional time and/or money claims if the Developer is late in the Construction Contract, the Contractor may remain without remedy in the event of the Developer`s default under this Agreement. (The obvious way to deal with this difficulty is to fully fulfill the obligations of the developer in the construction contract with the take or pay contract. We are simply commenting that this will generally be easier said than done, and it does not take into account the best interests of the financiers.) The interests of the governmental authority and financiers may conflict under conditions of default. For example, the government authority may have the right to terminate agreements for longer defaults, while financiers want the ability to repair defaults once the sponsor has not done so. In order to resolve such conflicts, it may be desirable for these parties to enter into what is known as a security agreement or an act of enforcement. A Build-Operate Transfer Agreement (BOT) is a model for financing large projects, usually infrastructure projects developed by public-private partnerships. If a delay is not corrected within the agreed healing time, the government authority may request a new solution called “Step In”. Step-in is a right granted to the governmental authority by the sponsor (and recognized by the operator and financiers), the governmental authority having the right to intervene and operate the facility in order to ensure the continuity of the supply of products to its customers. Examples of countries using BOT are Pakistan,[1] Thailand, Turkey, Taiwan, Bahrain, Saudi Arabia,[2] Israel, India, Iran, Croatia, Japan, China, Vietnam, Malaysia, Philippines, Egypt, Myanmar, and some U.S. states (California, Florida, Indiana, Texas, and Virginia). However, in some countries such as Canada, Australia, New Zealand and Nepal[3], the term “Build-Own-Operate Transfer” (BOOT) is used. The first BOT was built in 1979 by the Hong Kong-listed conglomerate Hopewell Holdings Ltd (controlled by Sir Gordon Wu).

Many infrastructure projects involve a long-term lease (up to 30 years) from the country on which the infrastructure will be built. This can give the government agency increased control over the site. It also ensures that the potential for the rehabilitation of the site is not transferred to sponsors. In the field of information technology, the BOT model is typically used to create a team or part of a team from a single project or branch of a company. In order not to waste time or effort finding, attracting and involving experienced specialists to work on a project, a company can use the BOT mechanism to create an outsourcing component to accomplish its tasks. So you don`t need to look for an office, take care of renting, hiring a team, and other important things. Plus, this approach is usually associated with ESP, which helps you build a team somewhere overseas where it will be much cheaper. ESP stands for external service providers that better meet customer needs. The operator`s essential contractual obligation is to operate and maintain the facility for the duration of the operation and maintenance contract. The default attitude of a part of the project documents has a considerable impact on the project….

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