The build-own-operate-transfer (BOOT) financial arrangement has been used around the world to fund important infrastructure in partnership between government and private investors. In this financing model, the private investor upfronts the initial investment cost and expects to be repaid over some time period. The investor has an expected rate of return before underwriting the project.
Guyana’s government – particularly the pre-2015 and post-2020 PPP/C – has sold this financial arrangement as one where the government undertakes no risk or financial obligation. The public is often told that the government is not upfronting any money; as a result, the builder-owner-operator bears the financial burden and risks. If it sounds too good to be true, it is.
