Document background
The Build Own Transfer Agreement is a crucial document used in Saudi Arabian infrastructure development projects where a private entity is granted the right to finance, build, and operate a facility for a specified period before transferring it to the government. This agreement type aligns with Saudi Vision 2030's privatization objectives and is commonly used for major infrastructure projects including power plants, transportation facilities, and water treatment plants. The document comprehensively addresses construction standards, operational requirements, financial arrangements, and transfer conditions, all while ensuring compliance with Saudi laws including the Foreign Investment Law, Government Tenders and Procurement Law, and relevant sector-specific regulations. It's particularly important in the context of Saudi Arabia's growing public-private partnership framework and requires careful consideration of local content requirements and Islamic finance principles.
