Railway Reform: Toolkit for Improving Rail Sector Performance - ppiaf

Railway Reform: Toolkit for Improving Rail Sector Performance
Annex 4: Concession Contract Guide
2 The Guide
2.1 Parties
In this Guide the public sector entity granting concession rights is referred to as
the ‘Authority’ and its counterpart as the ‘Concessionaire’, with the overall
scheme referred to as the ‘Scheme’. The agreement entered into between the
Authority and the Concessionaire is referred to as the ‘Agreement’. All those with
a financial stake in the Project, other than trade creditors and providers of equity,
are referred to as ‘Funders’. Accordingly, the term ‘funding’ refers to all types of
financial interest in the Project, other than equity and trade creditors.
Note, in some jurisdictions the bidder may be a consortium and the concession
company may be created immediately before or after the Concession Agreement
is signed. If the concession company was created immediately after, then the
Concession Agreement should provide for itself to be assigned or novated to the
new company before the concession term becomes effective.
2.2 Recitals/purpose
The document format will, to a degree, reflect what is customary in the host
country. These provisions will describe the Authority and its mandate, the proposed
concession, and may include a brief description of the bidding procedure
and outcome, namely the appointment of the Concessionaire.
2.3 Definitions
In some jurisdictions, legislation provides for definitions in and interpretation of
contracts and other legal documents. To the extent that this is not provided for,
the interpretation of expressions and the meaning of defined terms should be set
out.
Definitions for Railway Guide
Affected Party means the Party adversely affected by a Force Majeure Event.
Agreement means the Concession Agreement between the Authority and the
Concessionaire.
Authority means the public sector entity that entered into the Agreement.
Authority’s Default means an Event of Default for which the Authority is responsible.
Authority’s Variation means a Variation requested or sought by the Authority.
Back Stop Date means, subject to adjustment in accordance with the Agreement,
the last date by which the Concessionaire must complete the New Upgrades,
failing which the Authority may proceed immediately to termination under
the Agreement.
The World Bank Page 243