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Department of Finance

FAQ

What are the models for the private sector to participate in public infrastructure?

According to Article 8 of〝Act for Promotion of Private Participation in Infrastructure Projects〞, the private sector may participate in an infrastructure project by any of the following models:
1. The private sector invests in the building and operation of the project, and upon expiration of the operation period, transfers the ownership to the public sector (BOT).
2. The private sector invests in the building of the project and upon completion of the building, relinquishes the ownership to the public sector without compensation. The public sector then commissions the operation of the project to the same private sector. Upon expiration of the operation period, the right of operation reverts back to the public sector (BTO without compensation).
3. The private sector invests in the building of the project and upon completion of the building, the public sector acquires ownership through payment of the construction expenses. The public sector then commissions the operation of the project to the same private company. Upon expiration of the operation period, the right of operation reverts back to the public sector (BTO with compensation).
4. The public sector commissions the private sector, or the private sector leases from the public sector, existing facilities for operation after renovation or expansion. Upon expiration of the operation period, the right of operation reverts back to the public sector (ROT).
5. The public sector invests in the building of the project and then commissions the operation to the private sector. Upon expiration of the operation period, the right of operation reverts back to the public sector (OT).
6. To support the national policy, the private sector invests in the building of the project and has ownership of the building, and then either operates the facility by itself or commissions a third party for operation (BOO).
7. Any other model as may be approved by the competent authority.