(1) In deciding the mode and manner in which an identified Bankable Project is to be financed, the Board shall have regard to its own capabilities, offers available for collaboration by other Government Agencies and any Concession Agreement, or arrangement entered into by the State Government for this purpose with any person and form such special purpose vehicles, companies or entities on its own or as joint ventures as may be prescribed by the regulations.
(2) In inviting private sector participation, the Board shall follow a competitive bidding process which adheres to accepted norms of transparency and cost effectiveness and the Board shall frame the regulations to lay down the situations where competitive bidding method or other methods shall be followed, The Board may grant first right of refusal to the person developing the Bankable Project However, such first right of refusal shall be granted only on the basis of an appropriate procedure, which adheres to accepted norms of transparency and cost effectiveness. The Board shall have the right to cancel any adopted process without citing any reason and initiate a fresh process.
(3) In considering a proposal for development of a Bankable Project by private sector participation, the Board shall ensure that any exclusive right for such project development conferred on such persons is limited to a specified period.
(4) In order to ensure implementation of a Bankable Project, developed under this Act, the Board may form such special purpose vehicles, companies or entities on its own or as joint ventures as are deemed necessary for this purpose.
(5) The Board shall ensure that any Concession Agreement or arrangement formulated by Board is in consonance with the nature and parameters given in Schedule II and contains all necessary covenants to take care of the risks associated with the concerned Bankable Project and that the Concession Agreement or arrangement shall strive for the optimum contractual structure with regard to the need to balance the risks of stakeholders, maximize efficiency and minimize costs as may be prescribed.
(6) The Concessionaire may, charge, recover and appropriate the User Charges for use of any facility or product or service related to or arising out of a Bankable Project, where such project is undertaken by the Concessionaire. The Board shall specify the mode and manner of determination and variation of User Charges.
(7) Once any Bankable Project has been finalized. or a Concession granted, the State Government and the Board shall ensure that they do not act in any manner, which results in material adverse impact on the viability of the Infrastructure Project or the Concession Agreement.
(8) In case the State Government, Government Agencies, or the Specified Government Agencies wishes to terminate any Concession, it shall take such action only in consultation with the Board or as per the guideline provided by the Board in this behalf: Provided that where a Concession Agreement is terminated with or without the consent of the Concessionaire, the Concessionaire shalt be entitled to such amount of compensation for such termination, as is specified in the Concession Agreement.