Region: East Asia and Pacific
Country: India
Sectors: Transportation
Keywords: Contractual Provisions, Contract
Document(s):
Operations Agreement for bus shelters in Patna, Bihar, India190.58 KB
Document Details:
Sub-Sector: Urban Transport
Principal Author(s) (firm and contact person): Bihar Urban Infrastructure Development Corporation Ltd (BUIDC)
Purpose and Context: To operate and maintain bus shelters as part of a BRT system
Circumstances where this contract may be appropriate to replicate: Where it is deemed that advertising revenues will be sufficient to cover operators costs and profit margin and also to make annual payments to city.
Drafted for common law/ civil law jurisdiction: Common law
Main Features:
Duration 5 years
Service to be provided Operator has right to operate and maintain bus shelters and collect charges for advertising on shelters. It may advertise within the specified space. Advertisements need to be within the specified standards (cl. 3).
Operator to operate and maintain the bus queue shelters as per the terms and conditions of the agreement (cl. 4.1).
Private Party’s Obligations
Obtain licenses and permits to display advertising
Upfront Payment to be made to Grantor for being given the right to operate and advertise + Annual Premium
Insure bus shelters(cl 4.1)
Furnish a performance guarantee (cl.5)
Operate and maintain bus shelters in accordance with performance standards(6) (set out in schedule C). These cover:
· All Bus Queue Shelters, seats and the surrounding areas are to be kept cleaned at all times. The litter bins should not be overflowing at any time and disposal of garbage to bearranged to as required.
· The advertisement panels to be kept clean from dust, stains etc. at all times. It is to be ensured that posters etc. are not posted on any of the panels and on structural part of BQS.
· No leakage from roof to be permitted.
· Proper drainage is maintained and no accumulation of water, liquid etc. is allowed at anytime.
· The lighting arrangement at the BQS is functional at all times. Electrical safety is to be ensured for users.
· All structural members, seating arrangements and advertisement panels are to be inspected and maintained in good condition as per the maintenance manual.
· Broken floor tiles are to be replaced within 3 days of such event. For this purpose it is advised that the Concessionaire maintains a minimum inventory of similar tiles at his store.
· The flower plants and shrubs are to be maintained and watered regularly and the wastes to be disposed-off.
· The advertisements on panels to be changed during off peak periods – preferably during night hours.
For foreseeable events such as demonstrations, holidays etc the Operator is to seek Grantor approval for relaxation of Performance Standards.
Operator responsible for expenditure on electricity, spare parts, repairs, maintenance, and salary of staff and payment to other contractors / parties, etc. and any other expenditure for operation and maintenance of bus queue shelters (4.1).
Reporting requirements (9).
Grantor’s obligations In due course it shall use reasonable efforts to install system or real time tracking at bus stops (4.2)
Conduct regular checks of bus shelters (4.2)
Payment mechanism Operator to pay Grantor an Upfront Payment + an Annual Premiuim (excalated at 5% pa) (cl 4)
Private sector financing obligation? Yes – costs of operation and maintenance
Regulation – tariff review No
Monitoring (third party expert ect) Grantor or a third party agent
Penalty/ bonus mechanism? Yes penalties for non-performance
Dispute Resolution Arbitration under Indian Arbitration Act
Possible additional provisions that it might be appropriate to include: Clarity on who is providing the shelters and when.
Provisions that may NOT be advisable to replicate/ may need further thought: Indemnification clause seems to have some errors in it as it states that operator is responsible for running buses – it must mean bus shelters.
Provisions of wider general use:
Related agreements Part of a BRT system for the city.
Updated: August 25, 2020