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November, 2018
DIRECT
OR OF PORT
GOVERNMENT OF ANDHRA PRADESH
KAKINADA
RECTOR Of PORTS
GOVERNMENTOFANDHRA Page 2 of 260
PRADESH KAKINADA
Table of Contents
Contents
DEFINITIONS AND INTERPRETATION................................................................................................ 18
1.1 Definition ...................................................................................................................................... 18
1.2 Interpretation ........................................................................................................................... 18
1.3 Measurements and arithmetic conventions..................................................................................... 22
1.4 Priority of agreements, clauses and schedules................................................................................ 22
SCOPE OF THE PROJECT........................................................................................................................ 23
2.1 Scope of the Project....................................................................................................................... 23
GRANT OF CONCESSION........................................................................................................................ 23
3.1 The Concession.............................................................................................................................. 23
CONDITIONS PRECEDENT..................................................................................................................... 25
4.1 Conditions Precedent..................................................................................................................... 25
4.2 Deleted........................................................................................................................................... 28
4.3 Damages for delay by the Concessionaire...................................................................................... 28
4.4 Commencement of Concession Period........................................................................................... 28
4.5 Deemed Termination upon delay......................................................................................................28
OBLIGATIONS OF THE CONCESSIONAIRE........................................................................................... 29
29
31
5.1 Obligations of the Concessionaire.................................................................................................
32
5.2 Obligations relating to Project Agreements...................................................................................34
5.3 Obligations relating to Change in Ownership................................................................................ 34
5.4 Obligations relating to Port Services ............................................................................................
34
5.5 Obligations relating to berthing ....................................................................................................
5.6 Obligations relating to employment of foreign nationals.............................................................. 34
5.7 Obligations relating to employment of trained personnel .............................................................34
5.8 Obligations relating to non-discriminatory access.........................................................................35
5.9 Obligations relating to competition .............................................................................................. 35
5.10 Obligations relating to other cargo and passenger ships ...............................................................35
5.11 Obligations relating to medical aid................................................................................................ 36
5.12 Sole purpose of the Concessionaire............................................................................................... 36
5.13 Obligations relating to shareholder lock-in ..................................................................................
...............................................................................................................................................................37
5.14 Deleted
37
5.15 Concessionaire's Representative
5.16 Deleted...................................... 38
38
5.17 Deleted......................................
O B L I G A T I O N S O F T H E A U T H O R I T Y 3 8
6.1 Obligations of the Authority.......................................................................................................... 38
6.2 Connectivity to rail and road network.............................................................................................. 39
6.3 Deleted.......................................................................................................................................... 40
6.4 Obligations relating to refinancing................................................................................................ 40
REPRESENTATIONS AND WARRANTIES...............................................................................................40
7.I Representations and warranties of the Concessionaire ................................................................. 40
7.2 Representations and warranties of the Authority .......................................................................... 43
7.3 Disclosure........................................................................................................................................ 43
DISCLAIMER............................................................................................................................................. 43
8.1 Disclaimer..................................................................................................................................... 43
PERFORMANCE SECURITY......................................................................................................................44
9.1 Performance Security.................................................................................................................... 44
9.2 Appropriation of Performance Security ....................................................................................... 45
9.3 Release of Performance Security ................................................................................................. 45
9.4 Deemed Performance Security...................................................................................................... 46
9.5 Appropriation of Deemed Performance Security........................................................................... 46
9.6 References to Performance Security.............................................................................................. 46
RIGHT OF WAY........................................................................................................................................ 47
10.1 The Site......................................................................................................................................... 47
10.2 License. Access and Right of Way of the Authority's Site and the Proponent's Site ................... 47
10.3 Procurement of the Authority's Site............................................................................................... 49
10.4 Authority's Site to be free from Encumbrances............................................................................. 50
10.5 Protection of Site from Encumbrances 51
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GOVERNMENT OFANDHRA
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10.6 Costs of Right of Way................................................................................................................... 51
10.7 Access to the Authority and Independent Engineer....................................................................... 51
10.8 Geological and archaeological finds............................................................................................... 51
10.9 Reclaimed Land................................................................................................................................52
UTILITIES AND ROADS.............................................................................................................................52
11.1 Existing utilities ............................................................................................................................ 52
11.2 Shifting of obstructing utilities ..................................................................................................... 52
11.3 New utilities .................................................................................................................................. 52
11.4 Felling of trees............................................................................................................................... 53
CONSTRUCTION OF THE PORT...............................................................................................................53
12.1 Obligations prior to commencement of construction..................................................................... 53
17.7 Detailed Project Report.................................................................................................................. 54
12.3 Interruption during Construction Period........................................................................................ 56
12.4 Master Plan for the Site................................................................................................................. 56
12.5 ,Completion of the Port.................................................................................................................. 56
12.6 Deleted........................................................................................................................................... 57
12.7 Additional Port Terminals............................................................................................................. 57
12.8 Deleted........................................................................................................................................... 58
12.9 Deleted........................................................................................................................................... 58
MONITORING OF CONSTRUCTION.........................................................................................................58
13.1 Monthly progress reports .............................................................................................................. 58
13.2 Inspection...................................................................................................................................... 58
13.3 Tests............................................................................................................................................... 59
13.4 Delays during construction............................................................................................................ 59
13.5 Suspension of unsafe Construction Works.......................................................................................60
13.6 Video recording............................................................................................................................. 60
COMPLETION CERTIFICATE................................................................................................................. 61
14.1 Tests............................................................................................................................................... 61
14.2 Completion Certificate................................................................................................................... 61
14.3 Provisional Certificate .................................................................................................................. 61
14.4 Completion of Punch List items.................................................................................................... 62
14.5 Withholding of Provisional or Completion Certificate ................................................................. 62
14.6 Rescheduling of Tests.................................................................................................................... 63
ENTRY INTO COMMERCIAL SERVICE...................................................................................................63
15.1 Commercial Operation Date (COD)................................................................................................63
15.2 Damages for delay......................................................................................................................... 63
CHANGE OF SCOPE....................................................................................................................................64
16.I Change of Scope............................................................................................................................ 64
16.2 Procedure for Change of Scope...................................................................................................... 64
16.3 Payment for Change of Scope....................................................................................................... 65
16.4 Restrictions on certain works......................................................................................................... 65
16.5 Power of the Authority to undertake works................................................................................... 66
16.6 Deleted........................................................................................................................................... 66
OPERATION AND MAINTENANCE..........................................................................................................66
17.1 O&M obligations of the Concessionaire........................................................................................ 66
17.2 Maintenance Requirements ........................................................................................................... 68
17.3 Maintenance Manual .................................................................................................................... 68
17.4 Maintenance Programme..................................................................................................................68
17.5 Safety, vessel breakdowns and accidents ...................................................................................... 69
17.6 De-commissioning due to Emergency .......................................................................................... 70
17.7 Port closure.................................................................................................................................... 70
17.8 Damages for breach of maintenance obligations............................................................................ 70
17.9 Authority's right to take remedial measures................................................................................... 71
17.10 Overriding powers of the Authority ............................................................................................... 71
17.11 Restoration of loss or damage to Port.............................................................................................. 72
17.12 Modifications to the Port 4 72
.........................................................................................................................................................................................................................................................................................................................
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DIRECTOR"OFPORTS
GOVERN-14MT Of ANDHRA
PRADESH
17.17 Use of Port by Defence Forces.................................................. 74
SAFETY REQUIREMENTS.....................................................................74
18.1.............................................................................Safety Requirements 74
18.2......................................................Expenditure on Safety Requirements 74
MONITORING OF OPERATION AND MAINTENANCE....................75
19.1..........................................................................Monthly status reports 75
19.2............................................................................................Inspection 75
19.3.....................................................................................................Tests 75
19.4................................................................................Remedial measures 76
19.5.........................................................................Monthly Fee Statement 76
19.6..............................................................Reports of unusual occurrence 76
TRAFFIC REGULATION, SERVICES AND SECURITY......................77
20. I..............................................Traffic regulation by the Concessionaire 77
20.2.............................................................................Navigation assistance 77
20.3....................................................Obligations relating to Port Services 77
20.4.............................................................Obligations relating to berthing 78
20.5.................................................................................................Security 79
KEY PERFORMANCE INDICATORS....................................................80
21 I......................................................................Average pre-berthing time 80
21.2. Average ship berth day throughput ............................................ 81
21.3. Minimum performance standard requirements........................... 81
21.4........................................................Penalty for shortfall in performance 82
TRAFFIC AND DWELL TIME REPORTS.............................................82
22.1..............................................................Traffic and Dwell time Reports 82
22.2V e s s e l a n d C a r g o s u r v e y 8 2
22.3....................................................................Vessel and Cargo sampling 82
22.4..............................................................Computer systems and network 83
22.5.................................................................Port Communication System 83
INDEPENDENT ENGINEER AND OPERATIONAL AUDITOR..........83
23.1...........Appointment of Independent Engineer and Operational Auditor 83
23.2...............................................................................Duties and functions 84
23.3........................................................................................Remuneration 84
23.4..................................................................Termination of appointment 85
23.5..........................................................................Authorised signatories 85
23.6.................................................................................Dispute resolution 85
23.7................................................................................Interim arrangement 86
FINANCIAL CLOSE.................................................................................86
24.1.......................................................................................Financial Close 86
24.2..........................Termination due to failure to achieve Financial Close 87
Deleted 88
PAYMENTS TO THE AUTHORITY.......................................................89
26.1........................................................................Authority's Lease Rental 89
26.2..................................................................................Licensor's Rental 90
26.3........................................................................................Concession Fee 90
26.4..........................................................Determination of Concession Fee 90
26.5..................................................................Payment of Concession Fee 91
26.6..............................................................Verification of Realisable Fee 91
USER FEE...............................................................................................91
27.1..............................................Collection and appropriation of User Fee 91
27.2.................................................................................Notice of Fee rates 92
Deleted 92
Deleted 92
COMMISSIONING OF COMPETING PORT.........................................92
30.1..................................Restriction on commissioning of Competing Port 92
30.2...................................................................................................Deleted 92
30.3...................................................................................................Deleted 92
ESCROW ACCOUNT...............................................................................93
31.1......................................................................................Escrow Account 93
31.2D e p o s i t s i n t o E s c r o w A c c o u n t 9 3
31.3W i t h d r a w a l s d u r i n g C o n c e s s i o n P e r i o d 9 3
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OIRECTOR OF PORTS
GOVER$1MENT Of ANDHRA PRADESH
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