Content Headings

Key Issues

Example clauses

Notes and References

Concessionaire's undertakings

Alternative 1

Subject to, and in accordance with, the provisions of this Agreement, the Concessionaire shall have the right and the obligation to perform its duties under this Agreement at its own cost and risk without recourse to the Authority except as otherwise expressly provided in this Agreement.

The Concessionaire shall at its own cost be solely responsible for procuring that the Project Operations are at all times performed: 

(a)  in so far as not in conflict with an express obligation of the Concessionaire under this Agreement, where in relation to a matter there is no express obligation or standard imposed on the Concessionaire under this Agreement, in accordance with Good Industry Practice; 

(b)  in a manner consistent with the Quality Plans; 

(c)  in a manner that is not likely to be injurious to health or to cause damage to property;

(d)  in a manner consistent with the Authority discharging its statutory duties and other functions undertaken by it as the same maybe notified to the Concessionaire from time to time;

(e)  in compliance with all Laws and Consents (including without limitation the giving of notices and the obtaining of any such Consents) and so as not to prejudice the renewal of such Consents; and

(f)  except to the extent expressly stated to the contrary in the Authority's Construction Requirements or the Service Level Specifications, in compliance with all applicable [Regulatory] Requirements.

Alternative 1 adapted from Department of Health (UK), Standard Form Project Agreement Index reference A1 Folder 1.

Alternative 2

The Concessionaire shall at its own cost and expense:

(a)  investigate, study, design, construct, operate and maintain the Project/Project Facility in accordance with the Project Requirements; 

(b)  obtain all Applicable Permits in conformity with the Applicable Laws and be in compliance thereof at all times during the Concession Period; 

(c)  procure and maintain in full force and effect, as necessary, appropriate proprietary rights, licenses, agreements and permissions for materials, methods, processes and systems used in or incorporated into the Project; 

(d)  ensure and procure that each Project Agreement contains provisions that would entitle the Authority or a nominee of the Authority to step into the same at the Authority's discretion, in place and substitution of the Concessionaire, pursuant to the provisions of this Agreement or the Substitution Agreement; 

(e)  provide all necessary assistance to the Independent Engineer as it may reasonably require for the performance of its duties and services; 

(f)  appoint, supervise, monitor and control as necessary, the activities of Contractors under the respective Project Agreements; 

(g)  make efforts to maintain harmony and good industrial relations among the personnel employed in connection with the performance of its obligations under this Agreement; 

(h)  make its own arrangements for construction materials and observe and fulfill the environmental and other requirements under the Applicable Laws and Applicable Permits; 

(i)  be responsible for quality, soundness, durability, safety and the overall Project Requirements notwithstanding the appointment by it of Contractor(s) to implement and/or operate and maintain the Project/Project Facility; 

(j)  ensure that the Project Site remains free from all encroachments and take all steps necessary to remove encroachments, if any; 

(k)  make payments to the Police Department or any Government Authority, if required, for provision of such services as are not provided in the normal course or are available only on payment; 

(l)  afford access to the Project Site to the authorised representatives of the Authority the Independent Engineer and any Government Authority having jurisdiction over the Project, including those concerned with safety, security or environmental protection to inspect the Project and to investigate any matter within their authority and upon reasonable notice, the Concessionaire shall provide to such persons assistance reasonably required to carry out their respective duties and functions; and 

(m) obtain at its costs and charges special or temporary rights of way required by it in connection with access to the Project Site. The Concessionaire shall also obtain at its cost such other facilities as may be required by it for the purposes of the Project and the performance of its obligations under this Agreement.

Alternative 2 adapted from Concession Agreement for Colombo Kathunayake Expressway Project (note confidential), index reference A2, folder 1.

Alternative 3

The Concessionaire shall ensure on a continuting basis

(a)  the Service is continuously available;

(b)  it can maintain the design intention of the assets to achieve their full working life; and

(c)  the assets are handed back to the Authority on the Expiry Date in a condition complying with the requirements of Clause [Reference].

Alternative 3 adapted from Office of Government Commerce, UK, Standardisation of PFI Contracts - General, index reference C1, folder 5.