Parties In A Concession Agreement

Concession documents must also indicate precisely when the concession period actually begins, which can be a complex problem. Some of these provisions will come into effect at the time of signing, such as guarantees, confidentiality rules and clauses relating to applicable legislation and dispute resolution. In the case of asset transfer or infrastructure construction under a bot agreement, relevant conditions come into effect when the waiver of existing conditions is met. The terms and conditions are essentially the provision and proper execution of certain documents necessary to fulfil or support the obligations arising from the concession contract. Proven industrial practices: the operator is subject to its contractors, subcontractors, subcontractors, sub-concessions, sublessees and all other third-party agents of the operator, practices, methods, techniques and standards that are modified from time to time and which are generally accepted for use in international port construction, development, management, operation and maintenance, taking into account the conditions in the country. Bot. The legal right to newly built port infrastructure and, in some cases, to other assets remains in the hands of the government or port authority until the end of the concession period. The concessionaire enters into a long-term lease agreement that confers similar rights to the ownership of the land. This agreement is generally attached to the concession. While the main framework of the relationship between the port authority and the concessionaire is defined in the main concession agreement, there are a number of other documents that are part of the concession.

The concession contract and accompanying documents can be used in a number of circumstances, including: there is no generally accepted standard for a concession fee. This levy is normally determined as the sum of a fixed levy for the use of land managed by the Authority and a variable levy in the form of a debit licence fee for the right to perform handling services. The amount of the fee is a function of the local situation. The fixed share may represent the infrastructure costs (and, if applicable, construction costs) of the terminal, including financing costs. The structure and amount of the concession fee is an essential part of the analysis by the project proponents. The variable charge often depends on the position of the port as a whole (i.e. what the market can bear) and other considerations, such as the creation of a fund for surplus port workers. An important issue is the indexation of the concession fee (TEU fee).

This tax is generally expressed in U.S. dollars, euros or any other strong currency. Given that the duration of the concession could be longer than 30 years, it is clear that there is a serious risk of inflation. A concession agreement should therefore include a specific indexation clause. Indexing should apply to both fixed and variable fees.