What does DBFOT mean? What is the full form of DBFOT?

The full form of DBFOT is Design-Build-Finance-Operate-Transfer. It’s used on Business ,Business Terms in Worldwide

A project delivery mechanism government entities often use to structure the construction of public infrastructure projects such as roads, bridges and airports. In this structure, the government entity enters into an agreement with a private sector party under which it allocates to that party all of the project’s duties. This includes designing, constructing, financing, operating and maintaining the project. In exchange for assuming these obligations, the private sector party is entitled to receive, for a specified period, fees from the end users of the project or payments from the government in the form of availability payments or shadow tolls. At the end of the period, operating control is transferred back to the government entity. This structure is preferred by many governmental entities because:
  • It allocates most of the risks of the project to the private sector.
  • They are able to construct a project for which they may not have the financial, technical or operational capacity.

With the design-build-finance-operate-maintain (DBFOM) concessions approach, the responsibilities for designing, building, financing and operating are bundled together and transferred to private sector partners. There is a great deal of variety in DBFOM arrangements in the United States, and especially the degree to which financial responsibilities are actually transferred to the private sector. One commonality that cuts across all DBFOM projects is that they are either partly or wholly financed by debt leveraging revenue streams dedicated to the project. Direct user fees (tolls) are the most common revenue source. Availability payments have also been used in this capacity. Future revenues are leveraged to issue bonds or other debt that provide funds for capital and project development costs. Often they are also supplemented by public sector grants in the form of money or contributions in kind, such as right-of-way. Private partners usually required to make equity investments as well.

DBFOT

means

Design-Build-Finance-Operate-Transferhow to pronounce Design-Build-Finance-Operate-Transfer

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What does DBFOT mean? What is the full form of DBFOT?
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