Akshara Enterprises > Business > BOOT MODEL PROJECTS

What Is BOOT?

A build, own, operate and transfer (BOOT) contract is a project delivery model that can be used to for large projects, developed through Public Private Partnerships (PPPs). The term ‘Public Private Partnerships’ refers to a very broad range of partnerships in which the public and private sectors collaborate for some mutual benefit. This model represents a complete solution for the financing, construction and operation of a plant. Akshara Enterprises takes overall responsibility for the building and operational management of the plant, while at the same time securing the financing of the required investment using the available grant possibilities.

As an expert and partner, Akshara Enterprises offers the best, complete solution from a technical and economic perspective as a full-line supplier. At the end of the contractual period, the plant becomes the property of the customer.

How it works?

Here’s how the BOOT model works: The public-sector partner contracts with a private developer – typically a large corporation or consortium of businesses with specific expertise – to design and implement a large project. The public-sector partner may provide limited funding or some other benefit (such as tax exempt status) but the private-sector partner assumes the risks associated with planning, constructing, operating and maintaining the project for a specified time period. During that time, the developer charges customers who use the infrastructure that’s been built to realize a profit. At the end of the specified period, the private-sector partner transfers ownership to the funding organization, either freely or for an amount stipulated in the original contract. Such contracts are typically long-term and may extend to 40 or more years.