Investment types
- Civil Partnership
- BOT
- FDI
- FPI
- BOOT
- BOO
- BBO
- BLT
- BILT
- Buyback
- Others (barter, etc.)
Civil Partnership
Regarding the workflow at the Organization of Investment and Civil Partnership Management, the land is either provided by
- The municipality
- The private sector
In the former case, the following steps are taken:
- Conducting studies and preliminary analysis to identify potential investment opportunities
- Preparing organizational offers and/or proposals
- Encouraging investment, executing a contract, and issuing the construction licenses
- Monitoring the contract, controlling, supervising and delivering the project
In case, the land is provided by the private sector, the following procedure is adopted:
- Conducting studies and preliminary analysis to identify potential investment opportunities
- Preparing organizational offers and/or proposals
- Executing the contract, monitoring, supervising and delivering the project.
BOT
It is one of the new effective methods for fostering private sector participation. Some main advantages of BOT are outlined below:
- Decreasing and transferring the project risk to the private sector
- Funding infrastructure projects from the private sector
- The optimum use of knowledge and skills of private sector
In BOT, the municipality will provide the land on a temporary base contract. The investor shall undertake the construction process. Having completed the construction work, both investor and the municipality will share the benefits obtained from the project for a fixed predetermined period of time. Then, by the end of partnership contract, all assets including moveable and immovable will be transferred to the municipality. If both parties agree to transfer of one or some used assets to the investor, the value of used assets is calculated and reduced from the total volume of investment.
BOT procedure
- Identification: here the preliminary studies including technical, financial and economic analysis, the requirement, interests would be obtained through executing a BOT contract are done.
- Tender/negotiation
- Concluding a concession agreement
- Fulfilling the contract
- Operation and maintenance
- Transfer: by the end of the contract, the project is transferred to the owner.