Telemenia scope of supply includes BOT services. BOT projects are complex from both a financial and a legal point of view. If a client is not able to finance the project on the basis of budgetary resources or borrowings, the BOT approach is an option to be considered. The BOT approach is a useful alternative to the conventional financing and development of power projects in developing countries, for example..
In a BOT project format, Telemenia typically arranges for its own credit facility, constructs the complete plant, and operates and maintains the power plant based on a long term agreement with the client. Under this agreement, the client commits to purchase the generated power and any additional services according to the terms and conditions stipulated in the agreement, which also includes other commercial conditions (use of land, resources, fuel, etc.).
Usually, the term of such BOT agreements is between 15 to 25 years. Upon the expiration of the long term agreement, Telemenia transfers the project rights to the client at no additional cost.