Sub Concession Agreement

If the concessionaire obtains the right to build essential parts of the operating facilities as well as operational port infrastructure (mainly docks and focal operating work), a concession could be combined with a BOT agreement. In the case of legislation that qualifies part of the infrastructure as public, the concession may be considered a public licence. However, the part of the concession that constitutes a public licence is generally non-negotiable. As a general rule, the national authority granting the licence reserves the right to unilaterally change the terms of the licence. The main BOT agreements combine many variations in long-term leasing with investment commitments agreed in advance. In port reform, the most commonly used models are BOT, BOOT (build-own-operate-transfer), BTO (build-transfer-operate) and WBOT (wraparound BOT). These variations are described in more detail below and later in this module in BOTs and Construction. When entering into a concession contract for an existing terminal, it is common to include all or part of employees who are already working in the terminal or to expand an offer to participate in the new company. This area is very sensitive and should be treated very carefully even before the concessions are awarded.

Module 7 deals in more detail with work issues. Another useful resource on this subject is the World Bank on labour issues in infrastructure reform: a toolkit. Example 8: review of selected rail concessions in sub-Saharan Africa – World Bank Report, 2006 – Appendix C of the report contains a comparative revision of contractual clauses, provisions relating to access to third-party routes for various concession/farming agreements [Camrail (Cameroon), Sitarail (Ivory Coast – Burkina Faso), Madarail (Madagascar) and Transrail (Madagascar) and Transrail (Senegal) and Transrail (Senegal) – The termination clauses of a concession contract are of the utmost importance for the relations between the port authority and the The concession agreement is a negotiated balance between the interests of the port authority (efficient and economic use of the port country) and the operator (providing freight handling services on a cost-effective basis).


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