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What is PPP? What is the difference between PPP and BOT?

      PPP is short for “Private Participation in Infrastructure Projects”. It allows the private sector to build and operate infrastructure, which was implemented by the government in the past. With the capital, creativity and management skills from the private sector, the quality of public services will be improved.

    According to the Act for PPP, which was promulgated in 2000, there are many different models of private participation. The commonly known BOT (Build-Operate-Transfer) is only one of them. Its essence is that the government allows a private institution to invest in the building and operation of an infrastructure project and upon expiration of the operation period, the ownership of the infrastructure is transferred to the government. For existing infrastructure, the government may commission the private institution to operate it by way of OT (Operate-Transfer). Furthermore, private institutions may use BTO, BOO and ROT to participate in PPP projects, according to the characteristics of the infrastructure respectively.

Issued:Promotion of Private Participation Release date:2016-09-30 Last updated:2022-12-22 Click times:15194