[DRAFT] CONCESSION AGREEMENT Relating to the TIBAR BAY PORT PROJECT Between the GOVERNMENT of the DEMOCRATIC REPUBLIC of TIMOR-L
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Draft of 30 July 2014 Confidential – For information only [DRAFT] CONCESSION AGREEMENT relating to the TIBAR BAY PORT PROJECT between THE GOVERNMENT OF THE DEMOCRATIC REPUBLIC OF TIMOR-LESTE REPRESENTED BY THE MINISTRY OF TRANSPORT AND COMMUNICATIONS, and [Concessionaire] dated [] 2014 1. Draft of 30 July 2014 Confidential – For information only TABLE OF CONTENTS 1. DEFINITIONS AND INTERPRETATION ........................................................................ 6 2. CONCESSION RIGHTS AND OBLIGATIONS ............................................................. 17 3. CONCESSION PERIOD AND CONDITIONS PRECEDENT....................................... 18 4. EXCLUSIVITY .................................................................................................................... 22 5. CONCESSION AREA ......................................................................................................... 23 6. CONCESSIONAIRE E&S OBLIGATIONS .................................................................... 25 7. DISCLOSED DATA ............................................................................................................ 27 8. PROJECT PERMITS .......................................................................................................... 27 9. PROJECT AGREEMENTS ............................................................................................... 28 10. PROJECT SECURITIES .................................................................................................... 28 11. UTILITIES ........................................................................................................................... 30 12. INDEPENDENT ENGINEER ............................................................................................ 30 13. GENERAL CONSTRUCTION OBLIGATIONS ............................................................. 31 14. CONSTRUCTION TIMELINES ....................................................................................... 32 15. DESIGN OF THE PORT FACILITY................................................................................ 35 16. CONSTRUCTION OF THE PORT FACILITY .............................................................. 36 17. TESTING AND COMMISSIONING OF THE PORT FACILITY ................................ 37 18. DOCUMENTS TO RETAIN AT SITE.............................................................................. 38 19. OVERALL LIABILITY OF THE CONCESSIONAIRE ................................................ 39 20. COMMENCEMENT OF OPERATION ........................................................................... 39 21. GENERAL OPERATION OBLIGATIONS ..................................................................... 39 22. SCOPE AND LEVEL OF SERVICES .............................................................................. 40 23. MAINTENANCE AND REPAIR OF THE PORT FACILITY ...................................... 42 24. SAFETY AND SECURITY ................................................................................................ 43 25. STAFFING AND EMPLOYMENT ................................................................................... 43 26. CONCESSIONAIRE REPORTING OBLIGATIONS .................................................... 44 27. GRANTOR AUDIT RIGHTS ............................................................................................. 44 28. OPERATION PENALTIES ................................................................................................ 45 29. FINANCING ........................................................................................................................ 45 30. CONCESSION FEE ............................................................................................................ 46 31. TARIFFS .............................................................................................................................. 48 32. DEFAULT INTEREST ....................................................................................................... 50 33. OWNERSHIP AND CERTAIN RIGHTS ......................................................................... 50 34. INSURANCE ........................................................................................................................ 51 35. VARIATION ........................................................................................................................ 53 36. INTELLECTUAL PROPERTY RIGHTS ........................................................................ 57 37. FORCE MAJEURE ............................................................................................................. 58 38. POLITICAL FORCE MAJEURE ..................................................................................... 60 2. Draft of 30 July 2014 Confidential – For information only 39. QUALIFYING CHANGE IN LAW ................................................................................... 60 40. EVENTS OF DEFAULT ..................................................................................................... 62 41. EARLY TERMINATION IN CONNECTION WITH AN EVENT OF DEFAULT ..... 63 42. GRANTOR'S STEP-IN ....................................................................................................... 63 43. EARLY TERMINATION ................................................................................................... 65 44. EARLY TERMINATION PAYMENTS ............................................................................ 66 45. HANDOVER ........................................................................................................................ 69 46. RELATIONS WITH THIRD PARTIES - INDEMNITIES ............................................. 71 47. SUBCONTRACTORS ......................................................................................................... 71 48. CONFIDENTIALITY ......................................................................................................... 72 49. REPRESENTATIONS AND WARRANTIES .................................................................. 73 50. GOVERNING LAW ............................................................................................................ 73 51. FRAUD AND CORRUPTION ........................................................................................... 73 52. DISPUTE RESOLUTION .................................................................................................. 74 53. REPRESENTATIVES......................................................................................................... 77 54. MISCELLANEOUS ............................................................................................................ 78 3. Draft of 30 July 2014 Confidential – For information only LIST OF APPENDICES APPENDIX 1 - CONCESSION AREA LAYOUT ........................................................................... 83 APPENDIX 2 - PROJECT SCHEDULE .......................................................................................... 84 APPENDIX 3 - TECHNICAL SPECIFICATIONS ......................................................................... 85 APPENDIX 4 - MINIMUM SERVICE AND EQUIPMENT INVESTMENT REQUIREMENTS ............................................................................................................................................................. 121 APPENDIX 5 - CALCULATION OF THROUGHPUT PAYMENTS ........................................ 124 APPENDIX 6 – TARIFFS ................................................................................................................ 130 APPENDIX 7 – VGF DISBURSEMENT SCHEDULE ................................................................. 135 APPENDIX 8 – VGF DRAWDOWN REQUEST .......................................................................... 136 APPENDIX 9 – SECURITY FORM ............................................................................................... 138 APPENDIX 10 - INDEPENDENT ENGINEER ............................................................................. 144 APPENDIX 11 - TERMS OF REFERENCE FOR EIA ................................................................ 146 APPENDIX 12 – CONCESSIONAIRE SHAREHOLDING ......................................................... 174 APPENDIX 13 – AGREED FORM OF DIRECT AGREEMENT WITH LENDERS ............... 175 APPENDIX 14 – AGREED FORM OF DIRECT AGREEMENT WITH KEY SUBCONTRACTORS ...................................................................................................................... 176 APPENDIX 15 – LOCAL DEVELOPMENT PLAN ..................................................................... 177 APPENDIX 16 – INDICATIVE FINANCIAL PLAN ................................................................... 178 4. Draft of 30 July 2014 Confidential – For information only THIS CONCESSION AGREEMENT IS ENTERED ON [] 2014 BETWEEN: The Government of Timor-Leste, represented by the Ministry of Transport and Communication herein represented by His Excellence Pedro Lay da Silva, the Minister of Transport and Communications, (hereafter referred to as the "Grantor"); AND [], a company registered under the laws of Timor-Leste and having its registered office at [], herein represented by [], (hereinafter referred to as the "Concessionaire") which expression shall, unless repugnant to the context or meaning thereof, include its successors and permitted assigns, Each of the Grantor and the Concessionaire shall be referred to individually as a "Party" and