BO(T) is one of the key business models implemented by Zetes in government projects related to the issuing of electronic identity and travel documents. The authorities concede the production and/or personalisation of thesee-documents to Zetes for 5, 10 or more years. Consequently, Zetes will make the necessary investment to install a local infrastructure, create local employment and transfer know-how. The employees will be trained and benefit from Zetes’ experience and know how in order to operate the new plant.
No up-front investment from government
In order to determine the unit price per e-document, Zetes makes an inventory or assessment of all components needed:
and all operational expenses:
- operators hired and trained in the country
- flying over experts for local knowledge transfer
- project team
Zetes also bears the implementation costs for the whole infrastructure. Therefore, no up-front investments (capital expenditures) are required from the local government. When requested a BOT-scheme is sometimes completed at the end of the contract period by organizing the transfer to the local government of all hardware, machines and software licenses.
Financial strength of the provider
To be able to offer such a model, still unique to Zetes in this industry, a company needs to be financially strong. Quoted on the stock exchange, Zetes’ financial management is transparent and the company has the necessary funds to support these kind of investments in foreign countries. She gets her revenue directly from the selling of the e-documents to the citizens. The viability of a project is determined by the time lapse of the contract (minimum 5 years) and the estimation of the number of e-documents to be issued every year during the contract period.