Close

Government Concession Agreement

If the operator does not meet its obligations, a port authority generally has the option of terminating the contract. Termination for reasons is very serious, especially for the financing of the parties, and should be avoided as much as possible. The operator should have a reasonable period of time to prove compliance with the contractual terms and resolve the breaches. However, an operator may find itself in a difficult financial situation. B and may not be able to pay the concession fee. In this case, the port authority cannot terminate the contract directly, but take into account the likely severity and duration of the problem. If it is established that the port authority, perhaps in consultation with the operators, has reached an agreement with the operator (for example. B a deferred payment scheme) to avoid termination of the contract (see Box 48). Boats. It is also possible that the title to the property will be acquired directly by the dealer. Under a BOOT model, the parties agree to have the title on all assets that will be transferred to the government at the end of the concession. For many large terminal operators, the BOOT model is a preferred option.

During the concession phase, the port authority often plays two roles. On the one hand, the port authority serves the public interest as the regulator overseeing the delivery under the concession agreement. On the other hand, the port authority may participate in a public-private relationship with a private user of the port of the port. There is a growing trend for port authorities to become commercial players who interact with private terminal operators as economic partners rather than as regulators. This trend arose from the need for port authorities and terminal operators to need each other. As a result, it is very difficult to strike the right balance between regulatory relations and the commercial interests of both parties. In this context, the rights and obligations of the port authority were modelled as part of an owner`s port model. There is no generally accepted standard for the 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.

Tagged: