What Is Concession Agreement in Ppp

April 15, 2022

In India, the Supreme Court adopted the doctrine of essential bodies with respect to concession contracts in VST Industries Limited v. VST Industries Workers` Union and Anr. In this case, the Supreme Court ruled that a private entity that controls or operates infrastructure in India under a concession contract should be considered a public mission and that such entities are required to act in the public interest. In this course, participants will learn best practices in creating, negotiating and implementing strong PPP and concession contracts. Through presentations, case reviews and simulation exercises, participants deepen their understanding of the key elements of successful PPP and concession contracts, effective risk allocation and the development of negotiation skills. The course also describes the main financing agreements typically required by lenders in project finance transactions, and includes discussions on risks and mitigation techniques, as well as how to deal with contractual disputes. In the main proposals for the introduction of public-private partnerships, the NDRC considers that the operational methods of the PPP model include concessions, public service contracts, cooperation with shareholdings, etc. In the main proposals to promote the public-private partnership model in the field of public service, the NDRC, the Ministry of Defense and the People`s Bank of China stipulate that the use of the PPP model will be encouraged in the public service sector, but in certain sectors that require the implementation of concessions, such as energy, transport, water resources, environmental protection, utilities, etc. issues are dealt with in accordance with administrative measures relating to infrastructure and supply concessions. From these two regulatory documents, it can be inferred that the NDRC and the Ministry of Defence have come to a common understanding that PPPs involve concessions and that concessions are one of the means of implementing PPPs.

The right to use runways for a defined period of time may also be part of a concession (or franchise) contract. These agreements generally cover the construction, maintenance and operation of a rail network and involve significant investments. They therefore grant the right to operate defined networks or individual lines longer than track access agreements and often grant exclusivity to the rail operator. A leasing contract is similar to a concession, but the government generally remains responsible for capital expenditures. Leasing, in particular, may have some meaning in some jurisdictions. The World Bank`s Explanations on Water Regulation (Groom et al. 2006, 36-42) describe leases and concessions. These contracts may or may not fall within the definition of PPPs, depending on the duration of the contract. Example 7: Sub-Saharan Africa: Ifrikya Railway Concession – Case Study by Karim-Jacques Budin, SSATP Working Paper No. 64, World Bank, 2003 (English and French) – The case study contains an example of a railway concession contract (Section 3) designed for a sub-Saharan African State.

That model contract provides that the use of the railway infrastructure operated by the concessionaire may be open to other railway undertakings in the circumstances referred to in Article 6 of the concession contract. Use by third parties is based on access agreements to specific lanes between the concessionaire and the operator concerned, for which an infrastructure charge is charged. The preamble to the agreement. This section specifies the parties, the subject of the agreement, the context and the reference to the legal authorization of the authority to execute the agreement, the objectives and description of the project (in general, the scope of the project is indicated in a schedule attached to the main agreement), the language and number of original copies of the agreement, Date of entry into force, date and place of the agreement and other related matters. Default and output events. Consideration matters include the licensee`s default, the Agency`s default, termination due to licensee or agency default events, the parties` obligations and rights, the termination procedure and payments, and the claim of assets. Throughout the reference manual, PPPs are described using three general parameters: first, the nature of the asset concerned; second, the functions for which the private party is responsible; and third, how the private part is paid. Dilemma 3: Civil or administrative relationship? One of the most notable changes to the recently amended Law on Administrative Procedure is the inclusion of the execution, amendment and termination of concession contracts in the context of cases acceptable for administrative procedures. This was confirmed by the 1. May 2015 in the interpretations of the Supreme People`s Court of the Supreme People`s Court, which also stipulate that concession contracts are administrative agreements. .

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