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JOT BOT ROT

I. Joint Operation

Joint Operation is an association of two or more business entities joining to complete a project. The merger is temporary until the project is completed.

II. Built, Operate and Transfer (BOT)

Under a build-operate-transfer (BOT) contract, an entity – usually a government – grants a concession to a private company to finance, build and operate a project. The company operates the project for a period of time – perhaps 20 or 30 years – with the goal of recouping its investment, then transfers control of the project to the government. BOT projects are normally large-scale, greenfield infrastructure projects that would otherwise be financed, built and operated solely by the government. Examples include a highway in Pakistan, a wastewater treatment facility in China and a power plant in the Philippines. In general, BOT contractors are special-purpose companies formed specifically for a given project. During the project period – when the contractor is operating the project it has built – revenues usually come from a single source, an offtake purchaser. This may be a government or state-owned enterprise. Power Purchase Agreements, in which a government utility acts as offtaker and purchases electricity from a privately owned plant, are an example of this arrangement. Under a traditional concession, the company would sell to directly to consumers without a government intermediary. BOT agreements often stipulate minimum prices the offtaker must pay.

III. Rehabilitate, Operate and Transfer (ROT)

The ROT is a PPP (Public Private Partnership) model for infrastructure sector. Under this approach, the governments/local bodies allow private promoters to rehabilitate and operate a facility during a concession period. After the concession period, the project is transferred back to governments/local bodies Rehabilitate, Opearate and Transfer (ROT) is a contractual arrangement whereby an existing facility is turned over to the private sector to refurbish, operate and maintain for a franchise period, at the expiry of which the legal title to the facility is returned to the government.

 

When you want to set up company in Indonesia and start doing business in indonesia, you need to understand the rules and the regulations in Indonesia.

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