Comparison between BOT and PFI Financial Arrangement

BOT(Build-Operate-Transfer) and PFI(Private Finance Initiative), modes of project finance, belong to PPPs(Public-Private-Partnerships). In China, the introduction of BOT plays an important role in the development of our country's city infrastructure and national economy. In the last few years, the arrangements of PFI then PPP are introduced. The article compares the two arrangements of BOT and PFI from aspects of their backgrounds, definitions, application fields and operation procedures for the understanding and application of these two arrangements.