SCHEDULE II [See Section .2(i), 24(5)] CONCESSION AGREEMENT A. NATURE OF CONCESSION AGREEMENT
1. Build Operation and Transfer Agreement: - An agreement whereby the Concessionaire undertakes the construct ion , including financing, of a given infrastructure facility, and the operation and maintenance thereof. The Concessionaire operates the facility over a fixed term during which it is allowed to charge User Charges not exceeding those proposed in its bid or as investment, and operating and maintenance expenses in the project. The Concessionaire transfers the facility to the State Government, Government Agency or Specified Government Agencies unit concerned at the end of the fixed terms .
2. Build Own Operate and Transfer Agreement: - An agreement whereby the developer undertakes to finance , construct, maintain and operate an Infni:lstructure Project and whereby such Infrastructure Project is to vest in the developer for a specified period. During the period of operation of the Infrastructure Project by the developer, he may be permitted to charge user charges as specified in an a'greement. The developer is required to transfer the project to the State Government, the Government Agency or Specified Government Agency, as the case may be, after the expiry of the period of operation.
3. Build-Own-and Operate Agreement: - An agreement whereby a Concessionaire is authorized to finance, construct, own, operate and maintain an infrastructure or development facility from which the proponent is allowed to recover its total investment, operating and maintenance costs plus a reasonable return thereon by collecting User Charges.
4. Build Own Operate and Maintain Agreement:- An agreement whereby a developer undertakes to finance, construct, operate and maintain an Infrastructure Project and whereby such project is to vest in the developer for specified period. During the period of operation of the project, he may be permitted to charge User Charges as specified in the agreement.
5. Build and Transfer Agreement: - An agreement whereby developer undertakes to finance and construct an Infrastructure Project. After the completion of the project, the developer is required to transfer the project to the State Government, the Government Agency or, the Specified Government Agency as the case may be. The developer shall be paid such amount as is fixed in amortization schedule specified in the agreement.
6. Build Lease and Transfer Agreement: - An agreement whereby a developer undertakes to finance and construct the Infrastructure Project. On completion of the project, the developer hands it over to the State Government, the Government Agency or, as the case may be, the Specified Government Agency for operation under a lease agreement for period specified in the agreement after the expiry of which the project stands transferred to the State Government, the Government agency or, as the case may be, the Specified Government Agency.
7. Build Transfer and Operate Agreement - An agreement whereby the developer undertakes to finance and construct the Infrastructure Project. On completion of the project, the developer transfers the project to the State Government, the Government Agency or, as the case may be, a Specified Government Agency which permits the developer to operate the project on its behalffor a period specified in the agreement.
8. Contract-Add-and-Operate Agreement: An agreement whereby ~ the Concessionaire adds to an existing infrastructure facility, which it is renting from the State Government. It operates the expanded project over an agreed franchise period. There may, or may not be, a transfer arrangement in regard to the facility.
9. Develop operate and Transfer Agreement: - An agreement whereby favorable conditions external to a new Infrastructure Project which is to be built by a private project proponent are integrated into the arrangement by giving that entity the right to develop adjoining property, and thus , enjoy some of the benefits the investment creates such as higher property or rent values.
10. Lease Management Agreement: - An agreement whereby the State Government, the Government Agency or the Specified Government Agency leases a project owned by the State Government, the Government Agency or, as the case may be, the Specified Government Agency to the person who is permitted to operate and maintain the project for the period specified in the agreement and to charge user charges therefore.
11. Management Agreement: - An agreement whereby the State Government, the Government Agency or the Specified Government Agency entrusts the operation and management of a project to a person for the period specified in the agreement on payment of specified consideration. In such agreement the State Government, the Government Agency or, as the case may be, the Specified Government Agency may charge the User Charges and collect the same either its.elf or entrust the collection for consideration to any person who shall after collecting the User Charges pay the same to the State Government, the Government Agency or, as the case may be, the Specified Government Agency.
12. Rehabilitate Operate and Transfer agreement: . - An agreement whereby an existing prpject is vested in a person to renovate, operate and maintain for the period specified in the agreement after the expiry of which the Infrastructure Project is required to be transferred to the State Government, the Government Agency or, as the case may be, the Specified Government Agency. During the period of operation of the project by the developer, he may be permitted to charge User Charges as specified in the agreement.
13. Rehabilitate Own Operate and Maintain Agreement: - An agreement whereby an existing project is vested in a person to renovate, operate and maintain. 'The developer shall be permitted to charge User Charges as specified in the agreement.
14. Service Contract Agreement: '- An agreement whereby a person undertakes to provide services to the State Government, the Government Agency or the Specified Government Agency for a specified period. The .,State Government, the Government Ag~ncy or, as the case may be, the Specified Government Agency shall pay him an amount according to the agreed schedule.
15. Supply Operate and Transfer Agreement: - An agreement whereby a person supplies to the State Government, the Government Agency or the Specified Government Agency the equipment and machinery for a project and undertakes to operate the project for a period and consideration specified in the agreement. During the operation of the project, he shall undertake to train employees of the State Government, the Government Agency or, as the case may be, the Specified Government Agency to operate the Infrastructure Project.
-16. Joint Venture Agreement: - An agreement whereby the State Government, the Government Agency or the Specified Government Agency enters into an agreement with a developer to jointly finance, construct, operate and maintain a pr9ject for a period specified in the agreement after the expiry of which the project is required to be transferred to the State Government, the Government Agency or, as the case may be, the Specified Government Agency.
17. Agreement of any other nature which the Board may determine in consultation with the State Government and notify in the Official Gazette.
B. Parameters for Concession Agreement or Arrangement:
The following parameters for a concession agreement or arrangement shall define the suitability of a project for inviting private sector participation namely: -
(a) the Concession Agreement or arrangement may provide for the transfer of a project taken up with the private sector participation to the State Government, the Government Agency or, as the case may be, the Specified Government Agency, not later than a period of 40 years from the date of agreement or arrangement of implementation of a project;
(b) the Concession Agreement or arrangement may provide for financial participation by the State Government, the Government Agency or, as the case may be, the Specified Government Agency in any project up to a maximum of 30% of the project cost and the actual nature and quantum of this financial participation shall be based on the processes of due diligence and competitive bidding provided in the regulations framed by the Board forthis .purpose;
(c) the Concession Agreement or arrangement may provide for such incentives to the project as are admissible under the concerned sectoral policy of the Government to promote private sector participation or investment;
(d) the Concession Agreement or arrangement may provide for State Government Guarantee in respect of liability of State Government, the Government Agency Qr, as the case may be, the Specified Government Agency with regard to an Infrastructure Project;
L. M. SANGMA, Secretary to the Government of Meghalaya, Law Department.