Republic of Peru Project

REPUBLIC OF PERU PROJECT “IMPROVEMENT OF THE SEWERAGE AND WASTEWATER TREATMENT SYSTEM FOR THE CITY OF PUERTO MALDONADO, TAMBOPATA DISTRICT, TAMBOPATA PROVINCE, DEPARTMENT OF MADRE DE DIOS” ORIGINAL VERSION OF THE CONTRACT SEPTEMBER 2020 Important: This is an unofficial translation. In the case of divergence between the English and Spanish text, the version in Spanish shall prevail Page 1 of 240 Table of Contents CONCESSION CONTRACT ................................................................................................................... 6 Chapter I. RECITALS AND DEFINITIONS ....................................................................................... 6 Recitals ........................................................................................................................................... 6 Definitions ...................................................................................................................................... 9 Chapter II. LEGAL NATURE, PURPOSE, MODALITY, AND CHARACTERISTICS ........................... 9 Legal Nature ................................................................................................................................... 9 Purpose and Modality .................................................................................................................. 10 Characteristics .............................................................................................................................. 10 Chapter III. EVENTS AS OF THE CLOSING DATE ....................................................................... 10 Representations by the Parties .................................................................................................... 10 Verifications on the Closing Date ................................................................................................. 14 Chapter IV. CONCESSION TERM .............................................................................................. 18 Concession Term .......................................................................................................................... 18 Maximum Concession Term ......................................................................................................... 18 Renewals due to Expiration of the Concession ............................................................................ 18 Suspension of the Concession Term ............................................................................................ 19 Suspension of the Term for the Performance of Obligations ...................................................... 19 Procedure for the Declaration of Suspension of the Term .......................................................... 20 Effects of the Declaration of Suspension ..................................................................................... 21 Chapter V. REGIMEN OF ASSETS ............................................................................................ 22 Concession Assets ........................................................................................................................ 22 Delivery of the Concession Assets ................................................................................................ 23 Inventories ................................................................................................................................... 29 Easements .................................................................................................................................... 30 Defense of Possession .................................................................................................................. 32 Return of the Concession Assets of Component 1 ....................................................................... 33 Return of the Concession Assets Due to Termination ................................................................. 34 Replacement of the Concession Assets........................................................................................ 35 Chapter VI. DESIGN AND PERFORMANCE OF THE WORKS ..................................................... 36 Rights and Duties of the CONCESSIONAIRE ................................................................................. 36 Supervision of the Design and Execution of the Works ............................................................... 36 TECHNICAL FILES .......................................................................................................................... 40 Design and Works Logs ................................................................................................................ 43 Works Performance Schedule ...................................................................................................... 44 Start of Construction of the Works .............................................................................................. 45 Deadlines for Building the Works ................................................................................................. 47 Page 2 of 240 Extension of the Works Performance Term ................................................................................. 47 Approval of the Works ................................................................................................................. 48 Functional Testing of Component 1 and Delivery of the Functional Milestones to PSS .............. 50 Operating and Maintenance Manuals ......................................................................................... 51 Start-Up of Component 2 ............................................................................................................. 51 Delivery of Information ................................................................................................................ 54 Conditions for Project Expansion ................................................................................................. 54 Record of Works ........................................................................................................................... 56 Chapter VII. PERMITTED SECURED DEBT AND FINANCIAL CLOSE ............................................ 56 Permitted Secured Debt ............................................................................................................... 56 Financial Closing ........................................................................................................................... 57 Financial Closing Accreditation Procedure ................................................................................... 58 Guarantees in Favor of the Permitted Creditors .......................................................................... 59 Mortgage on the Concession Right .............................................................................................. 59 Security Interest on the Minimum Stake ..................................................................................... 61 Right of the Permitted Creditors .................................................................................................. 63 Chapter VIII. ECONOMIC-FINANCIAL REGIMEN .................................................................... 64 PPD Component Coming from Co-financing Revenue ................................................................. 67 PPD Adjustment ........................................................................................................................... 68 Discount for Sludge Reclamation ................................................................................................. 69 Deductions due to Failure to Meet the Service Levels ................................................................ 69 Procedure for the Approval of the PPD Payment ........................................................................ 73 Economic/Financial Balance ......................................................................................................... 75 Tax Regimen of the Concession ................................................................................................... 77 Other Income of the Concession .................................................................................................. 78 Chapter IX. GUARANTEES ........................................................................................................ 78 Guarantee of the GRANTOR to the CONCESSIONAIRE ................................................................ 78 Guarantees of the CONCESSIONAIRE to the GRANTOR ............................................................... 79 Renewal ........................................................................................................................................ 79 Execution of the Performance Bond ............................................................................................ 80 Chapter X. INSURANCE REGIMEN .......................................................................................... 81 Insurance Policy Types ................................................................................................................. 81 Approval of the Insurance ............................................................................................................ 85 Insurance Regimen ....................................................................................................................... 87 Liability of the CONCESSIONAIRE

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