A lease is akin to a concession, with the government generally liable for investments. Firming, in particular, may have special significance in certain legal orders. The World Bank`s explanatory notes on water regulation (Groom et al. 2006, 36-42) describe leases and concessions. These contracts may or may not be covered by the definition of PPPs, depending on the length of the contract. Force majeure. This section deals with events (political and apolitical), party obligation, cost allocation, compensation to dealers, termination of contract due to force majeure and payments resulting from termination. Definitions and interpretations. This section contains operational definitions and interpretations of the terms (for example. B accounting exercise, agency, authority, book value, concession, contractor, financial accounts, industry best practices, ministry, terminal, etc.) used in the contract document and requires a clear understanding. It can also determine what predominates if possible discrepancies or ambiguities are taken into account in the text of the agreement. Insurance and guarantees, non-responsibility.
Representations and guarantees from the dealer and the government authority regarding the obligations to notify the other party of any changes are covered by this section. Example 5: Brazil - Mining-Related Railway Concession - Concession agreement between the Brazilian state and a consortium of several mining companies. The concession agreement grants the concession to the concession for a 30-year concession for the development and operation of a 1,674 km rail line, which serves as a freight link to the main ports in the region. The concession agreement provides for access to a certain volume of local passenger transport (9.1 XX). The dealer is also required to exploit "mutual traffic" (i.e. to grant reciprocal access rights to other rail operators). If the dealer is unable to operate "mutual traffic," it must enter into track access agreements with third-party users. These contracts must be subject to the agreeing authority in order to avoid the abuse of economic power (9.1 XXII). The right to use lanes for a defined period of time may also be part of a concession (or franchise) agreement. These agreements generally combine the construction, maintenance and operation of a rail network and involve considerable investment. As a result, they grant the railway manager the right to operate certain networks or lines for a longer period than access agreements and often grant exclusivity to the railway operator.
The tariff, taxes, taxes and their collection and appropriation. Government authority fees, the concessionaire`s obligation, the tariff structure and amount, exemption and discrimination, cross-subsidies/subsidies, tariff revision, tariff adjustment, tariff review costs, royalties and royalties, integration of fees and taxes with other relevant operators, appropriation, royalty review, collection and payment/transfer mechanism are included in this section. It may also include accounting standards, information on operating costs, the collective agreement review process and the mechanism. In this form of PPP, the government defines and grants a company (usually a private company) specific rights to build and operate a facility for a specified period of time.