Railway Reform: Toolkit for Improving Rail Sector Performance - ppiaf

Railway Reform: Toolkit for Improving Rail Sector Performance
Annex 4: Concession Contract Guide
ment, but in many jurisdictions, because of the laws on insolvency of companies,
other remedies need to be exercised.
The expression is sometimes used in connection with agreements between the
Authority and the principal contractors of the Concessionaire to allow the
Authority to assume the role of the Concessionaire under those contracts in the
event of a Termination under the Agreement.
Dispute Resolution Procedure is the process of resolving disputes between
the parties arising under or in connection with the Agreement referred to in section
2.30 of the Guide.
Effective Date means the date on which all Conditions Precedent have been
met, or compliance with Conditions Precedent has been waived under the terms
of the Agreement, rendering the Agreement fully effective.
EPC means Engineering, Procurement, and Construction and the term EPC Contract
has the consequential meaning.
Event of Default means either an Authority’s Event of Default or a Concessionaire’s
Event of Default.
Financial Model means a mathematical representation of key financial and
operational relationships. Comprising one or several sets of equations, the Financial
Model is used to analyze how the business of the Concessionaire is due to
operate. The Financial Model may include analysis of how key variables will respond
to a range of economic situations or events; the model generally includes
forecasts of capital expenditure revenues, operational expenditures and income
estimates. Generally, a Financial Model is incorporated in computer software that
includes cash flow projections, depreciation schedules, debt service, inventory
levels, rate of inflation, and the like. Sometimes the model is represented in the
form of spreadsheets; if the model is to be used for the purposes of the Agreement,
it may be kept in electronic form and copies of the model held by a custodian
for safe keeping.
Force Majeure means an occurrence outside the control of the parties and
Force Majeure Events has the meaning discussed in section 2.16 of the Guide.
Funders in this document refers to the parties advancing funds to the Project
and may include bondholders, but will exclude equity providers or those supplying
equity-type finance through subordinated debt.
Future Upgrades refers to improvements to the Concessioned Assets that are
likely to be required as the concession develops, but are not specifically required
at the outset.
Independent Designer means the person or other legal entity who may be appointed
by the Concessionaire, but more likely the EPC contractor of the Concessionaire,
in circumstances outlined in section 2.9 of the Guide.
The World Bank Page 245