Build-Own-Operate (BOO)

In the Build-Own-Operate (BOO) type and its other variants such as Design-Build-Finance-Operate (DBFO), the private sector builds, owns and operates a facility, and sells the product/service to its users or beneficiaries. This is the most common form of private participation in the power sector in many countries (examples are numerous). For a BOO power project, the Government (or a power distribution company) may or may not have a long-term power purchase agreement (commonly known as off-take agreement) at an agreed price from the project operator.
IDevice Icon Examples of BOO projects
Many BOO projects have also been implemented in the transport sector. Examples include, Kutch and Pipavav Railways in India (joint venture BOO projects); Xiamen Airport Cargo Terminal in China and Sukhothai Airport in Thailand; and in the port sector, Wuhan Yangluo Container Port in China and Balikapapan Coal Terminal in Indonesia.

Copyright © 2008 by Transport Policy and Development Section, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).