The following figure shows the typical structure of a concession contract. It should be noted that, in a PPP concession model, an SPV may not always be necessary. However, an SPV may be required for a bot concession type. Example 4: Argentina – Contrato de Concesión Ferroviaria (430/94) and Addenda (167/01), Grupo de Servicio 6, Línea Belgrano Norte (Spanish) – Concession contract between the Argentine State and a private body (Ferrovias Sociedad Anonimas Concessionarios) on the Belgrano Norte railway line (from Villa Rosa to Retira – Buenos Aires Metropolian Area) with supplement. Concession of a railway for public passenger transport (concesión de servicio público). The concessionaire shall have the right to use all transferred assets, including rolling stock. The concessionaire is obliged to operate the railway system, maintain the railway infrastructure and make the investments defined in the concession contract. Ownership of assets remains in the hands of concise authority. Assets return to the granting authority at the end of the concession period, including assets acquired by the dealer (exceptions apply to vehicles). The duration of the contract is 24 years (renewable). The concessionaire shall be obliged to allow access to the track to railway undertakings or other concessionaires defined in the agreement, on the basis of railway access agreements, in return for railway access charges.

The conditions of access to the railways and the charges for access to the railways must be fair and proportionate (point 6.3 of the concession contract). The details are set out in the annexes to the Treaty (not yet published). The right to use lines for a defined period of time may also be part of a concession (or franchise) agreement. These agreements typically combine the construction, maintenance and operation of a rail network and involve significant investments. Therefore, they grant the right to operate defined networks or individual lines for an extended period of time as railway access agreements and often grant exclusivity to the rail operator. The commitments of the governmental authority. It shall contain general obligations and specific obligations of the contracting entity. This may include, for example, the establishment of a tariff valuation commission, possible public incentives, the handover of the project site and other areas in which the concessionaire/project company can expect support from the government, as well as the conditions for such support. The government`s obligations, if any, may be discussed in a separate section. Tariff, fees, taxes and collection and use. The rights of the governmental authority, the commitment of the concessionaire, the structure and amount of tariffs, exemption and discrimination, subsidy/cross-subsidy, revision of tariffs, tariff adjustment, cost of tariff revision, fees and taxes, integration of fees and tariffs with other relevant operators, appropriation, review of fees, collection and payment/transfer mechanism are included in this section. It may also include accounting standards, information on operating costs, the tariff review process and the mechanism.

It is a concession. Together with other relevant points, this section describes the authorization of activities entrusted to the concessionaire or project company. the rights, privileges and obligations of the concessionaire or project company; and the duration of the concession/contract. It can also be mentioned what the private company must do at the end of the term of the contract, for example the transfer of assets to the State. Force majeure. This section deals with events (political and apolitical), commitments made by the parties, allocation of costs, compensation to the concessionaire, termination of the contract for force majeure and payments resulting from such termination. . .

.

Share This