This is a supply and operating situation, which is a contractual agreement in which the supplier of equipment and machinery for an infrastructure project has operated it, thus providing technology transfer and training of designated persons to government authority. If one thinks about the dynamics of trust created by the agreement (at its most fundamental level) and the normal course of its creation and management, there are usually several parts that are thought to be an integral part of the whole structure. These are mainly the concessionaires (or settlor), the agents and the beneficiaries. Once the trust has been established and financed by the licensor, the trustee is responsible for managing the assets of the trust for the benefit of the beneficiaries, in accordance with the express provisions of the fiduciary agreement. When the trustee mismanages the trust patrimony or takes action that is not in the best interests of the beneficiaries, those beneficiaries (or anyone acting on their behalf) may bring an action against the trustee to enforce the terms of the trust and seek recourse. Under this traditional fiduciary framework, a trust without beneficiaries would not be applicable. As a result, courts have rejected such agreements in the past, unless the agent is willing to execute the purpose of the trust, thereby honoring a relationship of trust that would otherwise have failed as a traditional trust (this trust-type relationship is generally referred to as a „trust of honour“). Build-Transfer-and-Operate (BTO): a contractual agreement in which the government authority assigns an infrastructure project to the private party to build it turnkey, taking care of specified cost overruns, delays and performance risks. Once the project is commissioned, the private party will have the right to operate the facility and collect user taxes under the PPP agreement.
The title of the project in this agreement still belongs to the governmental authority. Once completed, in accordance with the full „BLT“ agreement, the developer leases the facility to the government for a predetermined schedule. As a result, ownership remains in the hands of the developer, while some costs from leased payments are amortized. At the end of the lease, the investment is sold directly to the government, also at a pre-agreed price.