What does the term 'build-own-operate' project mean in an international context?

The term 'build-own-operate' refers to a project model where a contractor or developer is responsible for the design, construction, and operation of a facility or project, thereby retaining ownership. In this model, the contractor invests in the project, builds the infrastructure, and then operates it for a specified term. During this operational phase, they are compensated, typically through payments from clients or revenue generated by the project itself.

This model is particularly prevalent in international business as it allows for a more integrated approach where contractors can leverage their expertise in both construction and management, ensuring that the project meets its operational goals effectively. The ownership aspect also presents a strong incentive for contractors to manage the project efficiently.

The other options do not accurately reflect the 'build-own-operate' concept. For instance, clients funding the project individually suggests a different financing structure which does not involve ownership on the part of the contractor. Similarly, client control over project management shifts the dynamics away from the contractor's role in both building and operating. Lastly, stating that contractors are fully responsible for project risks overlooks the organizational structure where the ownership and operational control are retained by the contractor, allowing them to manage risks associated with construction and operation directly.