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The document outlines a Concession Agreement between the Government of Andhra Pradesh and Kakinada Gateway Port Limited for the development of a Greenfield Commercial Port at Kona Village. The project will be executed on a Design, Build, Finance, Operate & Transfer (DBFOT) basis under the Swiss Challenge Mode. It includes detailed provisions regarding the scope, obligations, performance security, and operational requirements for the port's construction and management.

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0% found this document useful (0 votes)
28 views6 pages

1-45

The document outlines a Concession Agreement between the Government of Andhra Pradesh and Kakinada Gateway Port Limited for the development of a Greenfield Commercial Port at Kona Village. The project will be executed on a Design, Build, Finance, Operate & Transfer (DBFOT) basis under the Swiss Challenge Mode. It includes detailed provisions regarding the scope, obligations, performance security, and operational requirements for the port's construction and management.

Uploaded by

naveen.a
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CONCESSION AGREEMENT FOR DEVELOPMENT OF COMMERCIAL

PORT AT KONA VILLAGE, THONDANGI MANDAL, EAST GODAVARI


DISTRICT, ANDHRA PRADESH

BETWEEN

GOVERNMENT OF ANDHRA PRADESH (Energy, Infrastructure &


Investment
Dept.)

AND

KAKINADA GATEWAY PORT LIMITED

Development of Greenfield Commercial Port at Kona Village, Thondangi


Mandal, East
Godavari District of Andhra Pradesh on Design, Build, Finance, Operate & Transfer
("DBFOT") basis under Swiss Challenge Mode

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

4
DIRECTOR OF PORTS`- '
Page 3 of 260
GOVERNMENT OFANDHRA
PRADESIKAKIN ADA
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
.........................................................................................................................................................................................................................................................................................................................

17.13 Excuse from performance of obligations ....................................................................................... 73


1 7 . 1 4 B a r r i e r s a n d d i v e r s i o n s 7 3
17.15 Advertising on the Site ........................................................................................................................G s . 7 3
17.16 Deleted ...............................................................................................................................................74
.r6 .........................

Page 4 of
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

)k - 5 Page 5 of 260
OIRECTOR OF PORTS
GOVER$1MENT Of ANDHRA PRADESH
KAKItkilunt
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