Technology
When a plant needs water treatment infrastructure, the CFO faces a classic capital allocation problem: invest €2-5 million in equipment that will sit on the balance sheet for 15 years, or find a way to convert that CapEx into operational expenditure. The BOOT model does exactly that — and the financial advantages go far beyond simple balance sheet management.
A direct purchase of a 1,000 m³/day industrial water treatment system typically costs €2.0-3.5 million. This hits the balance sheet as a fixed asset, reduces available credit lines, and ties up capital that could be deployed in revenue-generating operations. Under BOOT, the same system appears as a service contract — a monthly operating expense with no asset on the books.
The most underappreciated benefit of BOOT is comprehensive risk transfer:
When comparing BOOT vs. purchase over a 15-year lifecycle, most CFOs are surprised to find that BOOT is cost-neutral or even cost-advantageous — because direct purchase TCO calculations systematically underestimate maintenance, chemical, energy, labor, and compliance costs that accumulate over time.
BOOT is the optimal choice when: CapEx budgets are constrained, the technology involves specialized expertise (membranes, advanced oxidation), compliance requirements are strict and penalties severe, or the company prefers to focus on its core business rather than water infrastructure management.
Under IFRS 16, a BOOT contract may be classified as a lease or a service agreement depending on its structure. A properly structured BOOT service contract keeps the asset off the client's balance sheet — the key is that RIEFILT retains substantive control over the asset and bears the operational risks. We work with clients' finance teams to ensure optimal accounting treatment.
The 'Transfer' in BOOT means full ownership of the system transfers to the client at contract end — typically at no additional cost or a nominal residual value. The client receives a fully maintained, documented, and operational system with remaining useful life. Alternatively, contracts can be extended, renegotiated, or the system can be replaced with newer technology under a new BOOT arrangement.
Every facility has a different optimal model. Request a RIEFILT Water Assessment — we build a detailed TCO comparison of BOOT vs. purchase for your specific situation, including all hidden costs most quotes ignore. Give your board a decision based on real numbers, not assumptions.
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