Concession Agreement Between Private Parties

Joint development agreement: the agreement dates [date] between sponsors and, among other things, the distribution of project responsibilities between sponsors in accordance with the schedule [number]. The public-private partnership refers to an agreement between the government or a public body and a private sector entity regarding the provision of assets or services for the benefit of the public. To this end, investments are made by the private body and sometimes the administration is also managed by them for a limited period of time. The state shares the risk of exploitation with the private company. The private entity receives payments based on specified, predefined and measurable performance standards. Finally, a concession agreement may include an exclusivity clause designed to prevent the dealer or operator and one of its subsidiaries from competing with other terminal operators for the specific traffic for which the concession has been granted, in certain geographical areas and during certain periods, as reasonably required by the market situation and the volume of investments. In any event, this period must be short enough in relation to the duration of the concession contract and, in the case of a BOT agreement, it must not exceed a period of five years preferably after the end of the construction programme. When an operator acquires an existing (formerly public) port facility, the rights and obligations of the public sector owner, as well as the use (but not ownership) of assets to the private sector. When a new facility is set up as part of a BOT agreement, the new operator will commission the facility after commissioning tests or measurements have been successfully carried out by an independent expert, usually a test certificate, who issues a commissioning certificate (see Box 30). In 2015, a committee was set up under the chairmanship of Vijay Kelkar to revive the ppp infrastructure model. In its report, the Committee recommended the development of a review and renegotiation mechanism to create flexibility in concession agreements. As a general rule, the port infrastructure established by a concessionaire through a BOT agreement remains the property of the port authority.