|WikiProject Business||(Rated Stub-class, Low-importance)|
Any ideas about Build-Operate-Sell (BOS)???
BOOT is not a synonym for BOT, it's a slightly different contractual structure. Similarly you have B-O-O contracts as well.
Agreed. BOOT and BOT are different and not based on regional terminology.22.214.171.124 02:08, 25 June 2006 (UTC)
I deleted the reference to BOAT and Venture Street as it was pretty much an advertisement. BOAT is a term only used by Venture Street, of unclear content. —Preceding unsigned comment added by 126.96.36.199 (talk) 19:56, 12 February 2011 (UTC)
I found this at the end of the article diff It seems to be an alternative lead section, I see nothing wrong with it, but I guess it duplicates content, and was in the wrong place. Someone with more time/experience/interest may want to check and see if there is anything that is useful for the article - see below:
BOT, BOOT, BOO, BLT, DBFO, DCMF are types of project financing. The hallmarks of project financing are:
(i) The lenders to the project look primarily at the earnings of the project as the source from which loan repayments will be made. Their credit assessment is based on the project, not on the creditworthiness of the borrowing entity.
(ii) The security taken by the lenders is largely confined to the project assets. As such, project financing is often referred to as "limited recourse" financing because lenders are given only a limited recourse against the borrower.
Most project finance structures are complex. The risks in the project are spread between the various parties; each risk is usually assumed by the party which can most efficiently and cost-effectively control or handle it.Once the project's risks are identified, the likelihood of their occurrence assessed and their impact on the project determined, the sponsor must allocate those risks. Briefly, its options are to absorb the risk, lay off the risk with third parties, such as insurers, or allocate the risk among contractors and lenders. The sponsor will be acting, more often than not, on behalf of a sponsor at a time when the equity participants are unknown. Nevertheless, each of the participants in the project must be satisfied with the risk allocation, the creditworthiness of the risk taker and the reward that flows to the party taking the risk. In this respect, each party takes a quasi equity risk in the project.