BOO meaning

Build, Own, Operate (BOO) describes a project delivery and financing model in which a private entity designs and constructs an asset, retains legal and beneficial ownership for its life, and operates it to earn revenue (often under a long-term power purchase agreement, capacity contract or user-charge regime). Unlike BOOT or DBFO/DBFM models, there is no contractual transfer of the asset back to the public sector at expiry. The term is not defined in legislation or case law; it is a descriptive market expression used across UK and Irish project finance and infrastructure procurement, particularly for independent power projects and industrial facilities. Key legal features include: allocation of construction and performance risk to the project company and its EPC/O&M contractors; limited-recourse project finance with security over the asset and key contracts; licensing and permitting; land and access rights; robust offtake and revenue arrangements; regulatory compliance (for example, electricity generation licensing and market rules); and decommissioning and environmental liabilities. Usage is broadly consistent across England and Wales, Scotland, Northern Ireland and Ireland. Notably, Rosatom is developing the Akkuyu nuclear power plant in Turkey under a BOO structure.