The Procuring Authority can play an important role in ensuring timely agreement on environmental and other permits required. These permits are generally issued by regulatory stakeholders, with whom the Procuring Authority may have ongoing relationships.
In some urban areas, and in environmentally sensitive areas, the number of permits to be secured for construction works and the associated burden can be high. Therefore it may be appropriate that the parties work together in a coordinated fashion in order to secure approvals and permits in a timely manner.
EXAMPLE Environmental permits The responsibility for acquiring permits in Brazil typically rests with the Project Company, as was the case in the 500kV Tucuruí-Jurupari Transmission Line project in Brazil. Delays in obtaining construction permits in Brazil have previously led to delays in starting construction, and a reduction of the operational period. Contract drafting has evolved in Brazil such that new PPP contracts now define the environmental permitting as a shared risk and allow more time for permitting. For more information, see the 500kV Tucuruí-Jurupari Transmission Line Case Study. |
EXAMPLE Construction permits One issue that occurred during construction of the Brabo 1 Light Rail project in Belgium was a situation in which the Project Company's construction permit was revoked because of public objections to the proposed developments. A new permit was, however, issued a few months later. Together with the Project Company, the Procuring Authority worked as a partner to resolve the issue. For more information, see the Brabo 1 Light Rail Case Study. |