September 7th 2010
What is the difference between a BOOT partnership and a joint venture?
A joint venture is an agreement between two parties to raise the capital for share assets and operate a business for mutual benefit. The BOOT partnership involves a party building, owning and operating a project for its client it and after a set amount of profit is made, transferring the ownership of the project to its client. In a joint venture, both parties own the business for an unlimited amount of time. In a BOOT partnership, the project is owned individually by both parties at different periods of time. Also, in a joint venture capital is raised by both parties but in a BOOT partnership, the project is financed by one party.
How does SNC-Lavalin’s sense of the international community play a role in its success?
SNC-Lavalin is among the top ten engineering and construction firms in the world today. Their great success is not only due to the innovative form of project financing called build-own-operate-transfer (BOOT). This method of project financing entails SNC-Lavalin building and owning a project for its client. SNC-Lavalin also operates this project, which is often social infrastructure, for its client until a certain amount of profit is made and then transfers the ownership of the project to its client. SNC-Lavalin is a multinational company welcomed if not sought after by all governments because of the many benefits and opportunities it brings to client countries. SNC-Lavalin is one of the few companies that successfully combines multinationalism with multiculturalism. It adapts to the community in which it works by respecting the cultural values and operating in the lingua franca. SNC-Lavalin also studies its environment and ensures that it meets its client’s needs by respecting their views and being ahead of its emerging trends and technological discoveries....