What Is A Concession Agreement Ppp

The concession is used for a number of types of contracts, as described in Delmon (Delmon 2010, Box 1 on page 9). In some jurisdictions, the concession may involve some type of contract; while it is more prevalent in others. In the context of PPPs, a concession is generally used to describe a PPP that pays for the user. For example, in Brazil, the Concessions Act applies only to contracts with payment from users; A separate PPP law regulates contracts that require payment from the government. On the other hand, concession is sometimes used as a collective term to describe a wide range of types of PPPs – for example, all recent PPPs in Chile have been implemented under the Concessions Law, including contracts fully paid for by the state. Concessions can be granted to a concessionaire under two types of contractual arrangements: Model Concession Agreements (MCAs) have played an important role in unbundling the complexity of these transactions. The use of a standardized form for concession contracts reduces unnecessary delays and higher transaction costs. It also simplifies the tendering process and creates trust among bidders and financiers who invest in infrastructure development. In addition, the application of standardized WABs reduces the costs and risks of small government agencies and private parties carrying out small projects at the local level, because in most cases they do not have the same expertise as the agencies and forums that develop the WAB. The Indian government has from time to time set up various committees to oversee the development of concession contracts. The B.K. The Chaturvedi Committee was established in 2009 to address procedural obstacles to the National Roads Development Project (PNDH). In its report, the Committee recommended several amendments to the ESC.

He advocated the removal of the termination clause and instead proposed an extension of the concession period if the concessionaire continues to expand the facility. He also proposed to give project promoters the opportunity to sell their 51% stake after two years from the commercial date of operation, use 3 types of delivery (BOT Toll, BOT Annuity and EPC) and allow lenders to charge fees on escrow accounts. The contractual form of a concession contract may also be used to grant transport rights for a longer period. An example is the Model Concession Agreement (MCA) for PPPs in the operation of container trains, which defines and grants the government specific rights to a company (usually a private company) to build and operate a facility for a certain period of time. .

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