What Is Termination Of Concession Agreement

Kerf et al (Kerf et al. 1998, 81-82) and Iossa et al (Iossa et al. 2007, 73-78) both describe the trade-off between a shorter concession period – which allows the government to return to the market to reissue the concession – against the deterrent effect that contracs can create, in particular, against the end of 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 agreement and related documents can be used in certain circumstances, including when: most cases of force majeure are: finally, the consortium can enter into a management contract with a professional operating company. The financing terms and the management contract are part of the concession documents (see Box 26). The costs of using the land granted are generally borne by the operator, including where the port authority has the right to dispose of the port land (see Box 53). In any event, the government generally makes a payment to the private party and takes control of the project`s capital, which may be re-tendered under a new PPP contract. Contractually defined termination payments generally depend on the reason for termination, as summarized in the types of notice and termination. The effectiveness of a full concession contract depends on compliance with conditions and the absence of circumstances that could lead to the early termination of agreed terms (see Box 25). The concession agreement should require the dealer to expressly comply with all applicable legal provisions and any changes to the general taxation.

The cost of complying with existing or planned legislation at the time of the concession should be included in the trade agreement provided for by the agreement. Performance parameters are best indicated in an annex of the concession agreement, with part of the agreement referring to the detailed schedule (see box 32). Concession agreements are usually spread over a long period of time (often twenty-five years or more). These long periods increase the likelihood that something could go wrong during an agreement. Parties therefore need a clear understanding of their rights in the event of a problem.