Build, Operate, Transfer

Chakravarty (2013) establishes that the BOT possesses a special structure that ensures that the buyer s decision to purchase the facility (yes/no) is not impacted by demand uncertainty, although the uncertainty is central to the determination of the size, productivity, and the price of the facility. While decisions are sensitive to the respective reservation values, the two parties react differently - principal buys a smaller facility if supplier desires a higher profit, and the supplier cuts price if principal wishes to reduce her cost. The author also establishes that the principal and supplier can both be better off if the principal is more experienced in offshore operations. 

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The build-operate-transfer model is borrowed from the automotive industry, where parts suppliers install their plants as satellites on the premises of the final assembler of the car. The main advantages are a zero distance supply chain and shared infrastructure. 

Floating NPPs can be leased under build-operate-transfer conditions, considerably decreasing the present political and economical restrictions on the use of nuclear technologies in developing countries, and... 

In a volatile market, contracts must reflect the uncertainties in the marketplace. This can be included in a contract in multiple ways. For example, the buyer can incorporate a delivery window instead of a fixed delivery time permit a small variation in the quantity delivered permit the wholesale price to vary within some botmds and buy insurance or financial hedges to insulate against market volatility. Examples of creative risk sharing contracts would be, capacity reservation, build-operate-transfer, forming supplier consortium, and forecast revision. 

BOX Build, operate, and transfer. The plant is built and operated by external agency till performance guarantee terms are met and then transferred immediately to the purchaser. 

BOMT Build, operate, maintain, and transfer to purchaser. The plant is built, operated, and maintained by external agency. At the end of the contracted period, it is to be handed over to purchaser. 

TCO is the cost calculated over the hfe cycle of a plant. This can be either the contract period of a build-own-operate-transfer (BOOT) project (in years) or the technical life of the mechanical and civil constructions. This cost can be compared for different plants realized, under construction, or being planned and the calculation can be applied also at large scale showing the trend for TCO (Knops et al, 2007). 

BOM Build, operate and maintain on behalf of the purchaser, who agrees to pay some fees or shares the profit generated. The vendor recovers the cost from this. The ownership is transferred to pirrchaser after the vendor has recovered his costs fully along with profit The purchaser does not invest funds initially but gets the benefits—at reduced rates... 

BOMT Build, operate, maintain and transfer to purchaser as per agreed schedule... 

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