A project delivery mechanism in which a government entity grants to a private sector party the right to finance, design, construct, own and operate a project for a specified number of years. This structure is very similar to the build-operate-transfer (BOT) structure, except that the private sector party owns the asset during the term of the agreement. The BOOT structure is often used to build power stations, water treatment facilities and sewage facilities.

For more information on this structure and construction contracts generally, see Practice Notes, Public Private Partnerships: Issues and Considerations and Understanding Project Finance Construction Contracts.