【Daily Question】Utilities - Civil Engineering - 20190907
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This post was last edited by hesonchang214 on 2019-9-8 at 17:18. In this financing model, funds are raised in a lump sum from foreign investors based on the project’s cash flows over a certain period, to be used for constructing a new project; once the investment period expires, the original project is handed over to the host country**. What is this financing model? A.TOT B.TBT C.BOOT D.BT 【Answer】A
TOT refers to the practice in the country where the project is located, where a project that is already in operation is transferred to foreign investors for management over a certain period of time. The cash flows generated by that project during this period are used as the basis to raise a lump sum of funds from the foreign investors, which are then utilized to fund the construction of new projects. After the foreign investor’s contract expires, the original project will be transferred to the country where the project is located.