20 Déc 2020

What Is Termination Of Concession Agreement

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While the concessionaire can, as far as possible, contribute such a sum to the concession agreement, the legal system of the host country still risks being underdeveloped and ending the fact that such protection does not make sense (it is rare for a foreign dealer to win proceedings against a host country). As can be seen above, there are a number of options open to the parties to remove them from their obligations in the event of a problem. However, trying to cover all scenarios that might occur in the future is not an easy task and the parties can often argue over the interpretation of the exception clauses or whether a clause covers a particular event. For more information on concession agreements, see my previous article, « Is this a terminal? » – Port Concession Litigation: www.linkedin.com/pulse/terminal-port-concession-disputes-matthew-gore Finally, the consortium can enter into a management contract with a professional operating company. The financing terms and the management contract are part of the concession documents (see Box 26). Notwithstanding the prudent provisions of the contract, early termination is generally costly for both parties and is a means of last resort when other avenues are exhausted. As described in the CSEE Guide (EPEC 2011b, 40), this means that the termination payments stipulated in the contract are important even if the termination is not made, since it defines each party`s case position at each settlement of disputes or renegotiations. Investments and capacity calculations are based primarily on traffic and throughput forecasts. In the case of a BOT agreement that requires significant dealer expenses, the port authority (or the national government) may commit not to license, promote or start another competing terminal (or terminal with more than one specified capacity) in a nearby port area. If new capabilities were created unexpectedly, the viability of a project could be compromised.

There is often, especially in small ports, only room for one or two terminals that transform a particular commodity. If the port authority is too concerned about intraportal competition, terminal operators may face fierce competition, which could lead to the bankruptcy of some of them at a time when governments want to encourage strong private sector participation in the port sector (see Box 28). Direct agreement of the lenders: the agreement between the lenders (represented by [name] of the bank, the dealer, the government and/or the port authority, including the rights of lenders under the concession agreement, port services agreement, administrative agreement and Site Lease Agreement, which are assigned to the security officer in connection with the transfer of project documents and are debited as part of the commercial mortgage and the procedures and obligations of the parties in the event of termination of the concession before the expiry of the concession.

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