Build-Operate-Transfer (BOT) Approach

Definition:

One of the two main approaches in fiancing the large-scale infrastructure projects. Contrary to State-Build-Own-Operate (SBOO) Approach, BOT Approach awards a project to a project company that operates the project for twenty-five to thirty-five years before it is transferred back to the government. BOT Approach is similar to Public-Private-Partnership (PPP) Approach.

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Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Deferred compensation

An amount that has been earned but is not actually paid until a later date, typically through a payment plan, pension, or stock option plan.

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