The BOT Contract as a Mechanism for Partnership between the Public and Private Sectors, and the Extent of Its Application in Algerian Legislation

Abstract

To implement the public-private partnership (PPP) system for long-term infrastructure projects, Build-Operate-Transfer (BOT) contracts are considered the optimal mechanism for enhancing the contribution of the private sector to advancing development levels in various countries across their economic, social, and environmental dimensions. They also help alleviate the burden on the state budget, reduce financing risks, and secure the investments required in various sectors, particularly those that require substantial financial resources for their implementation.

The concept of the BOT contract has generated considerable jurisprudential and legal debate regarding its definition, scope, and legal characterization due to the variation in its legal framework from one country to another, the broad scope of its application, and its similarity to other contracts used in this field. However, by examining the various definitions of BOT contracts, as well as their characteristics and stages, it is possible to determine their legal nature. As for Algerian legislation, it does not explicitly provide for BOT contracts; nevertheless, several legal provisions contain contracts that share the same characteristics as BOT contracts, and certain models of their application have emerged. Furthermore, this type of contract gives rise to legal effects for its two parties, namely the State and the project company.