BT is an investment way for the government to use non-government funds to build some infrastructure projects. BT is the abbreviation of two English words: Build and Transfer, which means that the government grants an infrastructure project to be built to an enterprise legal person for investment through a contract, and the enterprise legal person is responsible for the investment, financing and construction of the project within the prescribed time limit. At the end of the construction period, the government agreed to purchase commercial activities from the enterprise legal person according to the principle of equal value and compensation.

BOT is the abbreviation of English build-operate-transfer, which is usually translated literally as "build-operate-transfer". This translation is straightforward, but it can't reflect the essence of BOT. BOT is essentially a way of infrastructure investment, construction and operation. On the premise of reaching an agreement between the government and private institutions, the government grants concessions to private institutions, allowing them to raise funds to build infrastructure, and manage and operate the facility and its corresponding products and services for a certain period of time.

The biggest feature of this information expansion method is to mortgage the operation right of infrastructure for a certain period of time to obtain project financing, or privatize state-owned infrastructure projects. In this mode, firstly, the project sponsor obtains the franchise right of a project from the client through bidding, and then sets up a project company to finance the project and organize the project construction;

Manage the operation of the project, recover the funds to repay the loan and obtain reasonable profits through the development and operation of the project and other preferential policies given by the local ZF during the concession period. After the concession period ends, the project shall be handed over to ZF free of charge. In BOT mode, investors generally require ZF to guarantee its minimum rate of return, and once it fails to meet this standard within the concession period, ZF should give special compensation.

According to Article 2 of People's Republic of China (PRC) Government Procurement Law, "government procurement refers to the behavior of state organs, institutions and organizations at all levels using financial funds to purchase goods, projects and services within the scope of centralized procurement catalogue formulated according to law or above the procurement quota standard."

According to Article 7 of Chapter 4 of Guiding Opinions on Cultivating and Developing Engineering General Contracting and Project Management Enterprises issued by the Ministry of Construction of People's Republic of China (PRC) [2003] No.30, "Encourage engineering general contracting enterprises with investment and financing capabilities to build-transfer (BT), build-operate-transfer (BOOT) and build-own-

Baidu encyclopedia -BT mode

Baidu encyclopedia -BOT model