MBT
 
عربي
Go Search
 
 
 
Home > MBT > Partners
Contract Types  
Print This Page
Export to PDF
Contracts types vary according to businesses and activities that are required by the economic activities in the state. Selecting the contract type depends entirely on the nature of the project and the related economic activity. Contract names sometimes differ, but in general they come under one of the following types of usufruct or franchise contracts.

Built-Transfer-Own Contract (B.T.O)
Built-Operation-Own Contract (B.O.O)
B.O.O.T Contract (Build, Own, Operate and Transfer)
Built-Operation-Transfer (B.O.T)
B.R.T Contract (Build, Rent and Transfer)
D.B.M (Design, Build and Maintenance)
D.B.O (Design, Build and Operation)


The most common contract type in Arab countries is B.O.T Contract (Build, Operate and Transfer). Under this type of contract the government gives the potential investor, whether an individual or company, in infrastructure or public amenities projects the opportunity to establish the project itself. The investor shall equip the project with all state of the art technologies, machineries and plants, in addition to bearing all operational costs. In consideration, investor gets revenues of the project within a definite period, named the franchise period. The franchise period ranges between 20 to 50 years, and it can be more based on the type of the contract and the related economic activities in accordance with the state's appropriate evaluation and public interest. Upon the completion of the franchise contract, the whole project with all its mobile and immobile assets shall be transferred to the state, or the lease contract is renewed to the same operator. These contracts are to be made between the state and investors in infrastructure and public amenities projects.

 
 
Terms of Use | Employee Email | SiteMap
Businessmen Consumer Investor