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National Highways Authority of India Request for Proposal - Bid Document Volume - II: Draft Concession Agreement (Ministry of Road, Transport & Highways) Government of India INTERNATIONAL COMPETITIVE BIDDING (ICB) REQUEST FOR PROPOSAL (RFP) For Construction and Operation of Wayside Amenities at ********************************************* under BOT Mode (Build, Operate, Transfer) (Package No: *****************) REQUEST FOR PROPOSAL (RFP) BID DOCUMENT VOLUME - II DRAFT CONCESSION AGREEMENT (DCA) G-5 & 6, Sector-10, Dwarka, New Delhi - 110 075 Construction and Operation of Wayside Amenities along National Highways under BOT Mode (Build, Operate, Transfer) 1 National Highways Authority of India Request for Proposal - Bid Document Volume - II: Draft Concession Agreement Contents CONCESSION AGREEMENT ............................................................................................... 13 ARTICLE 1 .............................................................................................................................. 15 1.1 Definitions................................................................................................................. 15 1.2 Interpretation ............................................................................................................. 15 1.3 Measurements and arithmetic conventions ............................................................... 17 1.4 Priority of agreements, clauses and schedules .......................................................... 17 ARTICLE 2 .............................................................................................................................. 20 2.1 Scope of the Project .................................................................................................. 20 ARTICLE 3 .............................................................................................................................. 21 3.1 The Concession ......................................................................................................... 21 3.2 Deleted ...................................................................................................................... 22 3.3 Deleted ...................................................................................................................... 22 3.4 Deleted ...................................................................................................................... 22 ARTICLE 4 .............................................................................................................................. 23 4.1 Conditions Precedent ................................................................................................ 23 4.2 Damages for delay by the Authority ......................................................................... 24 4.3 Damages for delay by the Concessionaire ................................................................ 25 4.4 Deemed Termination upon delay .............................................................................. 25 ARTICLE 5 .............................................................................................................................. 26 5.1 Obligations of the Concessionaire ............................................................................ 26 5.2 Obligations relating to Project Agreements .............................................................. 29 5.3 Obligations relating to Change in Ownership ........................................................... 30 5.4 Employment of foreign nationals.............................................................................. 31 5.5 Employment of trained personnel ............................................................................. 31 5.6 Sole purpose of the Concessionaire .......................................................................... 31 5.7 Branding of the Project ............................................................................................. 31 5.8 Facilities for physically challenged and elderly persons .......................................... 31 5.9 Maintenance obligation during Development Period ............................................... 32 5.10 Personnel engaged by the Concessionaire ................................................................ 32 5.11 Authority’s observation on Personnel ....................................................................... 32 5.12 Removal of Personnel engaged ................................................................................. 32 5.13 Risks and Responsibility for the Project ................................................................... 32 5.14 Disclaimer for Responsibility of Project................................................................... 33 ARTICLE 6 .............................................................................................................................. 34 Construction and Operation of Wayside Amenities along National Highways under BOT Mode (Build, Operate, Transfer) 2 National Highways Authority of India Request for Proposal - Bid Document Volume - II: Draft Concession Agreement ARTICLE 7 .............................................................................................................................. 36 7.1 Representations and warranties of the Concessionaire ............................................. 36 7.2 Representations and warranties of the Authority ...................................................... 38 7.3 Disclosure ................................................................................................................. 38 ARTICLE 8 .............................................................................................................................. 39 8.1 Disclaimer ................................................................................................................. 39 ARTICLE 9 .............................................................................................................................. 41 9.1 Performance Security ................................................................................................ 41 9.2 Appropriation of Performance Security .................................................................... 41 9.3 Release of Performance Security .............................................................................. 42 9.4 References to Performance Security ......................................................................... 42 ARTICLE 10 ............................................................................................................................ 43 10.1 The Site ..................................................................................................................... 43 10.2 License, Access and Right of Way ........................................................................... 43 10.3 Procurement of the Site ............................................................................................. 44 10.4 Site to be free from Encumbrances ........................................................................... 46 10.5 Protection of Licensed Premises from encroachments ............................................. 46 10.6 Special/temporary right of way ................................................................................. 46 10.7 Access to the Authority and Independent Engineer .................................................. 46 10.8 Geological and archaeological finds ......................................................................... 46 10.9 Deleted ...................................................................................................................... 47 10.10 Deleted ...................................................................................................................... 47 10.11 Acceptance of Project Assets .................................................................................... 47 ARTICLE 11 ............................................................................................................................ 48 11.1 Existing utilities and roads ........................................................................................ 48 11.2 Shifting of obstructing utilities ................................................................................. 48 11.3 New Utilities ............................................................................................................. 48 11.4 Felling of trees .......................................................................................................... 48 ARTICLE 12 ............................................................................................................................ 49 12.1 Obligations prior to commencement of construction................................................ 49 12.2 Drawings ................................................................................................................... 49 12.3 Construction of the Project ....................................................................................... 51 12.4 Deleted ...................................................................................................................... 52 12.5 Deleted ...................................................................................................................... 52 12.6 Extension of Time ..................................................................................................... 52 Construction and Operation of Wayside Amenities along National Highways under BOT Mode (Build, Operate, Transfer) 3 National Highways Authority of India Request for Proposal - Bid Document Volume - II: Draft Concession Agreement 12.7 Deleted ...................................................................................................................... 53 12.8 Operation and maintenance of the Project ................................................................ 53 12.9 Deleted ...................................................................................................................... 53 12.10 Sub-licensing of the Project ...................................................................................... 53 12.11 Rights of Sub-licensees after Termination of Concession Agreement ..................... 54 12.12 Compliance with Applicable Laws ........................................................................... 54 12.13 Commercial advertisement or display ...................................................................... 54 ARTICLE 13 ............................................................................................................................ 55 13.1 Monthly progress reports .......................................................................................... 55 13.2 Inspection .................................................................................................................. 55 13.3 Tests .......................................................................................................................... 55 13.4 Delays during construction ....................................................................................... 56 13.5 Suspension of unsafe Construction Works ............................................................... 56 13.6 Video recording ........................................................................................................ 57 ARTICLE 14 ............................................................................................................................ 58 14.1 Tests & Inspections ................................................................................................... 58 14.2 Completion Certificate .............................................................................................. 58 14.3 Provisional Certificate .............................................................................................. 58 14.4 Completion of Punch List Items ............................................................................... 59 14.5 Withholding of Provisional or Completion Certificate ............................................. 60 14.6 Rescheduling of Inspection & Tests ......................................................................... 60 ARTICLE 15 ............................................................................................................................ 61 15.1 Commercial Operation Date (COD) ......................................................................... 61 ARTICLE 16 ............................................................................................................................ 62 16.1 Change of Scope ....................................................................................................... 62 16.2 Procedure for Change of Scope ................................................................................ 62 16.3 Payment for Change of Scope................................................................................... 63 16.4 Restrictions on certain works .................................................................................... 63 16.5 Power of the Authority to undertake works .............................................................. 64 16.6 Reduction in Scope of the Project ............................................................................. 64 ARTICLE 17 ............................................................................................................................ 66 17.1 O&M obligation of the Concessionaire .................................................................... 66 17.2 Service & Maintenance Requirements ...................................................................... 68 17.3 Maintenance Manual ................................................................................................. 69 17.4 Maintenance Programme .......................................................................................... 69 Construction and Operation of Wayside Amenities along National Highways under BOT Mode (Build, Operate, Transfer) 4 National Highways Authority of India Request for Proposal - Bid Document Volume - II: Draft Concession Agreement 17.5 Deleted ...................................................................................................................... 70 17.6 De-commissioning due to Emergency ...................................................................... 70 17.7 Project closure ........................................................................................................... 70 17.8 Damages for breach of maintenance obligations ...................................................... 71 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 the Project ............................................................ 72 17.12 Modifications to the Project ...................................................................................... 72 17.13 Excuse from performance of obligations .................................................................. 73 17.14 Deleted ...................................................................................................................... 73 17.15 Advertising on the Site.............................................................................................. 73 ARTICLE 18 ............................................................................................................................ 74 18.1 Safety Requirements ................................................................................................. 74 18.2 Expenditure on Safety Requirements........................................................................ 74 ARTICLE 19 ............................................................................................................................ 75 19.1 Monthly status reports............................................................................................... 75 19.2 Quarterly status reports ............................................................................................. 75 19.3 Inspection .................................................................................................................. 75 19.4 Tests .......................................................................................................................... 75 19.5 Remedial measures ................................................................................................... 76 19.6 Deleted ...................................................................................................................... 76 19.7 Reports of unusual occurrence .................................................................................. 76 ARTICLE 20 ............................................................................................................................ 77 20.1 Regulation by the Concessionaire ............................................................................. 77 20.2 Police assistance........................................................................................................ 77 20.3 Medical Aid booth .................................................................................................... 77 20.4 Computer systems and network ................................................................................ 77 ARTICLE 21 ............................................................................................................................ 78 ARTICLE 22 ............................................................................................................................ 79 ARTICLE 23 ............................................................................................................................ 80 23.1 Appointment of Independent Engineer ..................................................................... 80 23.2 Duties and functions ................................................................................................. 80 23.3 Remuneration ............................................................................................................ 80 23.4 Termination of appointment ..................................................................................... 80 23.5 Authorised signatories .............................................................................................. 81 Construction and Operation of Wayside Amenities along National Highways under BOT Mode (Build, Operate, Transfer) 5 National Highways Authority of India Request for Proposal - Bid Document Volume - II: Draft Concession Agreement 23.6 Dispute resolution ..................................................................................................... 81 23.7 Interim arrangement .................................................................................................. 81 ARTICLE 24 ............................................................................................................................ 83 24.1 Financial Close.......................................................................................................... 83 24.2 Termination due to failure to achieve Financial Close ............................................. 83 ARTICLE 25 ............................................................................................................................ 84 ARTICLE 26 ............................................................................................................................ 85 26.1 Concession Fee ......................................................................................................... 85 26.2 Additional Concession Fee (Premium) ..................................................................... 85 26.3 Deleted ...................................................................................................................... 86 26.4 Payment of Concession Fee ...................................................................................... 86 26.5 Deleted ...................................................................................................................... 86 26.6 Deleted ...................................................................................................................... 86 ARTICLE 27 ............................................................................................................................ 87 27.1 Collection and Appropriation of Revenue ................................................................ 87 27.2 Deleted ...................................................................................................................... 87 27.3 Deleted ...................................................................................................................... 87 27.4 Deleted ...................................................................................................................... 87 27.5 Deleted ...................................................................................................................... 87 27.6 Deleted ...................................................................................................................... 87 27.7 Deleted ...................................................................................................................... 87 27.8 Deleted ...................................................................................................................... 87 27.9 Deleted ...................................................................................................................... 87 27.10 Deleted ...................................................................................................................... 87 27.11 Deleted ...................................................................................................................... 87 27.12 Deleted ...................................................................................................................... 87 27.13 Compliance with Applicable Laws ........................................................................... 87 ARTICLE 28 ............................................................................................................................ 88 ARTICLE 29 ............................................................................................................................ 89 ARTICLE 30 ............................................................................................................................ 90 ARTICLE 31 ............................................................................................................................ 91 31.1 Escrow Account ........................................................................................................ 91 31.2 Deposits into Escrow Account .................................................................................. 91 31.3 Withdrawals during Concession Period .................................................................... 91 31.4 Withdrawals upon Termination ................................................................................ 92 Construction and Operation of Wayside Amenities along National Highways under BOT Mode (Build, Operate, Transfer) 6 National Highways Authority of India Request for Proposal - Bid Document Volume - II: Draft Concession Agreement ARTICLE 32 ............................................................................................................................ 94 32.1 Insurance during Concession Period ......................................................................... 94 32.2 Notice to the Authority ............................................................................................. 94 32.3 Evidence of Insurance Cover .................................................................................... 94 32.4 Remedy for failure to insure ..................................................................................... 94 32.5 Waiver of subrogation............................................................................................... 95 32.6 Concessionaire’s waiver ........................................................................................... 95 32.7 Application of insurance proceeds ............................................................................ 95 32.8 Insurance Cover ........................................................................................................ 95 32.9 Compliance with conditions of insurance policies ................................................... 96 ARTICLE 33 ............................................................................................................................ 97 33.1 Audited Accounts...................................................................................................... 97 33.2 Appointment of Auditors .......................................................................................... 97 33.3 Certification of claims by Statutory Auditors ........................................................... 98 33.4 Set-off ....................................................................................................................... 98 33.5 Dispute Resolution .................................................................................................... 98 ARTICLE 34 .......................................................................................................................... 100 34.1 Force Majeure ......................................................................................................... 100 34.2 Non-Political Event ................................................................................................. 100 34.3 Indirect Political Event ........................................................................................... 100 34.4 Political Event ......................................................................................................... 101 34.5 Duty to report Force majeure Events ...................................................................... 102 34.6 Effect of Force Majeure Event on the Concession ................................................. 102 34.7 Allocation of costs arising out of Force Majeure.................................................... 103 34.8 Termination Notice for Force Majeure Event ......................................................... 103 34.9 Termination Payment for Force Majeure Event ..................................................... 104 34.10 Dispute Resolution .................................................................................................. 104 34.11 Excuse from performance of obligations ................................................................ 104 ARTICLE 35 .......................................................................................................................... 105 35.1 Compensation for default by the Concessionaire ................................................... 105 35.2 Compensation for default by the Authority ............................................................ 105 35.3 Extension of Concession Period ............................................................................. 105 35.4 Deleted .................................................................................................................... 105 35.5 ................................................................................................................................. 105 35.6 Mitigation of costs and damage .............................................................................. 105 Construction and Operation of Wayside Amenities along National Highways under BOT Mode (Build, Operate, Transfer) 7 National Highways Authority of India Request for Proposal - Bid Document Volume - II: Draft Concession Agreement ARTICLE 36 Deleted ............................................................................................................ 106 ARTICLE 37 .......................................................................................................................... 107 37.1 Termination for Concessionaire Default ................................................................. 107 37.2 Termination for Authority Default.......................................................................... 109 37.3 Termination Payment .............................................................................................. 109 37.4 Other rights and obligations of the Authority ......................................................... 110 37.5 Survival of rights..................................................................................................... 111 ARTICLE 38 .......................................................................................................................... 112 38.1 Divestment Requirements ....................................................................................... 112 38.2 Inspection and cure ................................................................................................. 113 38.3 Cooperation and assistance in transfer of Project ................................................... 113 38.4 Vesting Certificate .................................................................................................. 114 38.5 Deleted .................................................................................................................... 114 38.6 Divestment costs etc. .............................................................................................. 114 ARTICLE 39 .......................................................................................................................... 115 39.1 Liability for defects after Termination .................................................................... 115 39.2 Retention of Escrow Account ................................................................................. 115 ARTICLE 40 .......................................................................................................................... 117 40.1 Restrictions on assignment and charges ................................................................. 117 40.2 Permitted assignment and charges .......................................................................... 117 40.3 Assignment by the Authority .................................................................................. 117 ARTICLE 41 .......................................................................................................................... 118 41.1 Increase in costs ...................................................................................................... 118 41.2 Reduction in costs ................................................................................................... 118 41.3 Protection of NPV ................................................................................................... 119 41.4 Restriction on cash compensation ........................................................................... 119 41.5 No claim in the event of recovery from Users ........................................................ 119 ARTICLE 42 .......................................................................................................................... 120 42.1 General indemnity ................................................................................................... 120 42.2 Indemnity by the Concessionaire ............................................................................ 120 42.3 Notice and contest of claims ................................................................................... 121 42.4 Defence of claims ................................................................................................... 121 42.5 No consequential claims ......................................................................................... 122 42.6 Survival on Termination ......................................................................................... 122 ARTICLE 43 .......................................................................................................................... 123 Construction and Operation of Wayside Amenities along National Highways under BOT Mode (Build, Operate, Transfer) 8 National Highways Authority of India Request for Proposal - Bid Document Volume - II: Draft Concession Agreement 43.1 Licensee rights ........................................................................................................ 123 43.2 Access rights of the Authority and others ............................................................... 123 43.3 Property taxes.......................................................................................................... 123 43.4 Restriction on sub-letting ........................................................................................ 123 ARTICLE 44 .......................................................................................................................... 124 44.1 Dispute resolution ................................................................................................... 124 44.2 Mediation and Conciliation..................................................................................... 124 44.3 Arbitration ............................................................................................................... 124 ARTICLE 45 .......................................................................................................................... 126 45.1 Disclosure of Specified Documents ........................................................................ 126 45.2 Disclosure of Documents relating to safety ............................................................ 126 45.3 Withholding disclosure of Protected Documents ................................................... 126 ARTICLE 46 .......................................................................................................................... 127 46.1 Complaints Register ................................................................................................ 127 46.2 Redressal of complaints .......................................................................................... 127 ARTICLE 47 .......................................................................................................................... 128 47.1 Governing law and jurisdiction ............................................................................... 128 47.2 Waiver of immunity ................................................................................................ 128 47.3 Deleted .................................................................................................................... 128 47.4 Depreciation and Interest ........................................................................................ 128 47.5 Delayed payments ................................................................................................... 128 47.6 Waiver ..................................................................................................................... 129 47.7 Liability for review of Documents and Drawings .................................................. 129 47.8 Exclusion of implied warranties etc. ....................................................................... 129 47.9 Survival ................................................................................................................... 129 47.10 Entire Agreement .................................................................................................... 130 47.11 Severability ............................................................................................................. 130 47.12 No partnership ......................................................................................................... 130 47.13 Third parties ............................................................................................................ 130 47.14 Successors and assigns ............................................................................................ 131 47.15 Notices .................................................................................................................... 131 47.16 Language ................................................................................................................. 131 47.17 Counterparts ............................................................................................................ 131 47.18 Compensation for land acquisition ......................................................................... 131 ARTICLE 48 .......................................................................................................................... 132 Construction and Operation of Wayside Amenities along National Highways under BOT Mode (Build, Operate, Transfer) 9 National Highways Authority of India Request for Proposal - Bid Document Volume - II: Draft Concession Agreement 48.1 Definitions............................................................................................................... 132 SCHEDULE - A (See Clause 10.1) ....................................................................................... 148 1. The Site ................................................................................................................... 148 2. Deleted .................................................................................................................... 148 3. Deleted .................................................................................................................... 148 SCHEDULE - B (See Clause 2.1) ......................................................................................... 150 1. Development of the Project .................................................................................... 150 2. The Project .............................................................................................................. 150 3. Deleted .................................................................................................................... 150 4. Deleted .................................................................................................................... 150 SCHEDULE - C (See Clause 2.1) ......................................................................................... 157 1. Project Facilities...................................................................................................... 157 2. Deleted .................................................................................................................... 157 3. Deleted .................................................................................................................... 157 SCHEDULE - D (See Clause 2.1) ......................................................................................... 159 1. The Project .............................................................................................................. 159 2. Deleted .................................................................................................................... 159 SCHEDULE - E (See Clause 4.1.3)....................................................................................... 286 1. Applicable Permits .................................................................................................. 286 SCHEDULE - F (See Clause 9.1) .......................................................................................... 288 SCHEDULE - G (See Clause 12.1) ....................................................................................... 291 1. Project Completion Schedule .................................................................................. 291 2. Project Milestone-I.................................................................................................. 291 3. Project Milestone-II ................................................................................................ 291 4. Project Milestone-III ............................................................................................... 291 5. Scheduled Completion Date of the Project ............................................................. 292 6. Extension of Period ................................................................................................. 292 SCHEDULE - H (See Clause 12.2) ....................................................................................... 293 1. Drawings ................................................................................................................. 293 2. Additional Drawings ............................................................................................... 293 3. Disclaimer ............................................................................................................... 293 SCHEDULE - I (See Clause 14.1.2) ...................................................................................... 295 1. Schedule for Tests & Inspections ........................................................................... 295 2. Tests & Inspection .................................................................................................. 295 3. Agency for conducting Tests: ................................................................................. 296 Construction and Operation of Wayside Amenities along National Highways under BOT Mode (Build, Operate, Transfer) 10

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Masonry / Precast RCC slab / or other suitable structure as per design to withstand the well compacted fencing with gate shall be provided all around the Children's Play Area). Providing and (d) Gwalior Granite, Shabad Pratap Ashram. Road .. Panchkula. (d) Punjab Prestressed Concrete Ltd.
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Masonry / Precast RCC slab / or other suitable structure as per design to withstand the well compacted fencing with gate shall be provided all around the Children's Play Area). Providing and (d) Gwalior Granite, Shabad Pratap Ashram. Road .. Panchkula. (d) Punjab Prestressed Concrete Ltd.

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