Build and Transfer / Own
Building and transferring (B&T) and building and owning (B&O) are two different
models for the development and management of fibre infrastructure projects,
including fibre optic distribution networks. Each model has its own set of benefits
and considerations, and the choice between them depends on various factors such
as the organization's long-term goals, financial capabilities, and risk management
strategies.
Build and Transfer (B&T): In the B&T model, NexGen is responsible for the
complete design, construction, and implementation of the fibre optic distribution
network. Once the project is completed, the ownership and operational
responsibilities are transferred to the client, typically the government or a private
entity. This transfer often occurs after a predefined period or upon the fulfilment of
specific conditions outlined in the contract.
- Reduced Long-term Responsibility: After the transfer, NexGen is relieved of long-term operational and maintenance responsibilities.
- Risk Allocation: The client taking over the infrastructure project assumes the risks associated with long-term operations and maintenance.
Client Ownership: Once transferred, the client takes ownership and operational control of the fibre optic distribution network. The client is responsible for the ongoing maintenance, upgrades, and management of the network. Some of the benefits of the ownership model include:
1. Long-term Revenue Generation: Client has the opportunity to generate long-term revenue through the operation and maintenance of the infrastructure project.
2. Complete Control: Client retains full control over the project, allowing for greater flexibility in decision-making and potential future expansions.
3. Investment Returns: Client can potentially benefit from the appreciation of the infrastructure asset, which can contribute to the overall returns on the initial investment.