Guarantees and guarantees for project contracts: These are guarantees (guarantees) of banks or third parties with the necessary financial strength (usually the parent company or holding company of one of the parties to the project contract), the purpose of which is to make the liability of a particular party bankable, usually with regard to damages or repayment of advances received. Essentially, these are considered as accessories to the project documents, and the forms necessary for these guarantees are given in the appendix. In reality, these are fairly well-known standard forms in the financial market. Contracts for the supply of raw materials needed to operate the project: Fuel supply contracts (contracts for the purchase of fuel for projects in the field of electricity generation) are particularly important in this category. The need for investment in infrastructure projects is very high and these costs cannot be easily covered if the economic atmosphere deteriorates or the operator ceases operations. The final product resulting from those costs cannot be used for other activities. For this reason, the renegotiation of concession contracts takes place in the event of termination. It may face competition concerns involving the abuse of a dominant position, the creation of mergers and the conclusion of anti-competitive agreements on the basis of the rights deriving from the concession agreement. In order to ensure the follow-up and prevention of abuse of rights in concession contracts, the following positions may be filled: It obliges the concessionaire to perform the task of providing the services specified in the contract. It contains the commitments, insurances and warrants to be signed by the parties before the conclusion of a concession contract.
It includes the declaration of the financial capacity or authority of the parties to perform the contract and to fulfil the obligations set out therein. Concession contracts differ from the typical supply of commercial goods and service contracts in various aspects, such as: the scope of the project means and includes the performance and performance of all other obligations of the concessionaire in accordance with the provisions of this Agreement and all matters related to or necessary for the performance of all or part of the concessionaire`s obligations under this contract. It contains provisions for compensating a party for all direct costs incurred or incurred by it in the event that the other party violates any of the terms of the Agreement. The breaches or omissions contained herein include disruptions to operations or acts resulting from intentional acts or omissions or gross negligence. Compensation shall be calculated by adding up all direct costs incurred or incurred by the Authority as a result of that material breach or omission. Public concessionaires. What happens if the project company is crown-owned? Eurostat`s rules allow its assets to remain off the public sector balance sheet if it is a `market unit`, i.e. a public entity that already operates from the State on market terms follows the same rules on subsidies or guarantees as a private company and was not created specifically for the project in question.
This obviously leaves a lot of room for the use of « public-public partnerships » (see §17.2.2). It obliges the concessionaire to pay the performance guarantee to the authority and to fulfil the conditions precedent. The conditions precedent are as follows: The concession network is a useful tool that can help simplify each party`s position on contentious issues in an agreement. It works by recording the details that are discussed in a grid that lists each issue, the position of the parties on that issue, and the minimum acceptable outcome. Each party`s attitude to these issues will be different depending on what they are trying to accomplish and what is ultimately most important to them. To this end, what is important to one party may or may not be just as important to the other party. It is helpful for a negotiator to understand what is important and what is not. The concession grid facilitates this by providing an easy-to-understand information grid that identifies inconsequential concessions, opportunities for compromise, and disruptive factors for both parties. A concession contract is a negotiated contract that grants a company rights through a government, local authority or other legal entity.
Complex Private Finance Initiative (PLT) projects may include a concession contract that gives private contractors the right to use certain assets. However, when transferring these rights, the government or judicial authority may set certain expectations regarding the level of maintenance and investments made, as well as the operating standards to be met. The « privatization of airports » through a management contract is somewhat counterintuitive, as it does not involve equity participation or transfer of ownership rights. However, from a historical point of view, it is still considered one of the options (although rarer). As we have seen, concession contracts are licenses issued by government agencies to the private sector for various infrastructure projects and are therefore fundamental for infrastructure development in the country. The parties to the concession contract must ensure that the above clauses are included in their agreement in order to avoid litigation in the future. In addition, the parties must also check the necessary and additional documents before concluding the contract, as non-compliance with environmental regulations and other similar regulations can lead to the payment of high penalties and the cessation of construction carried out as part of the project. Overall, it is recommended that the parties consult with their lawyers before entering into the transaction under the concession, as it involves huge investments. In many cases, a project without a host is not legally or financially viable It contains the work that must be carried out by the concessionaire under this agreement. The scope of work includes construction, operation, maintenance and other obligations established by the concessionaire under the agreement. Sometimes it is also the obligations of the authority that grants the concession to the concessionaire.
Arbitration agreements – Definition, purpose and interpretationThis practice note deals with the nature and scope of arbitration agreements with a particular focus on arbitration agreements under the law of England and Wales, although it also deals with the concept of an international concession agreement is a contract that gives an enterprise the right to conduct a particular activity within the jurisdiction of a government or on the ownership of a other company. pursue. subject to special conditions. Concession contracts often involve contracts between the non-governmental owner of a facility and a concession owner or concessionaire. The agreement grants the concessionaire the exclusive right to operate his business in the factory for a certain period of time and under certain conditions. Concessions always require a specific law relating to the project or a « framework law » with regard to concessions in general, so that a private company can collect and collect revenue from users for the provision of a public sector service. In some countries, particularly common law countries (i.e. those whose legal system derives from English common law), PFI model PPPs are treated as a variety of public procurement markets for which no specific legal regulation is required; in other countries, mainly civilian (i.e. those whose legal system derives from the French Civil Code), specific PPP laws may be needed to create a framework for this type of contract, similar to concessions laws. (Civil law countries also often have separate legal frameworks and courts for public administrative law, including PPPs.) Therefore, for example, it was necessary for the France to adopt a specific PPP law to overcome legal obstacles to PFI PPP models, such as: rights relevant to the area in which the project is developed: the project company must ensure that it has the necessary rights (usually property rights or a lease) in relation to the site, where the project is published.
A legal complication with regard to these rights arises with BOT-based contracts, where work is transferred to the public administration after a certain period of time. These rights represent an important technical and legal complication in projects where the nature of the legal property rights in relation to the project is more difficult to define, for example. B projects such as the exploitation of North Sea oil fields (whether in territorial waters or otherwise) and oil or gas pipelines. In the event that Licensee has committed a material breach (without complying with these terms of this Agreement) or a breach of this Agreement, it will pay to the Authority as compensation all direct costs incurred or incurred by the Authority as a result of such breach or material delay within 30 days of receipt of the claim: which is supplemented by the necessary information. Contracts for the use of assets or rights of third parties: These are documents over which the project has substantive rights (e.B. ownership or right of access to the territory in which the project is carried out) or intangible rights (e.B. those that allow the use of a particular technology or patent/license) necessary for its realization are guaranteed. Sometimes these rights are granted by the public administration, and therefore the corresponding document (also) makes sense from an administrative point of view. .