Title: Request for proposals and draft concession agreement for the renovation, maintenance, management and transfer of a public market

Languages: English

Published: January 1, 2012


Region: South Asia

Country: India

Keywords: PPP Project Cycle, Preparation, Request for proposals

DocumentLink(s):

Document Summary:

 

Request for proposals and draft concession agreement for the renovation, maintenance, management and transfer of a public market (Dilli Haat Pitampura) (Food Court and Shops comprising 19food stalls with seating space for 400 persons, multi-purpose pavilion area and three shops located in the non-ticketed area in Delhi on a PPP basis by the Delhi Tourism and Transportation Development Corporation (DTTDC).


Document Details:

 

Request for proposals and draft concession agreement for the renovation, maintenance, management and transfer of a public market (Dilli Haat Pitampura) (Food Court and Shops comprising 19food stalls with seating space for 400 persons, multi-purpose pavilion area and three shops located in the non-ticketed area in Delhi on a PPP basis by the Delhi Tourism and Transportation Development Corporation (DTTDC).

Concession is for 10 years.

Winning bidder is bidder that has passed the technical and financial criteria in the technical bid (pass/ fail) and is selected based on highest annual concession fee bid.

The concession agreement is clear and is an abbreviated and simplified form drawn from the model concession agreement of India.  The main clauses amount to 60 pages of text, plus schedules.

Operator is given the exclusive right to operate the market and carry out activities there during the Agreement Period.  Operator shall perform activities in accordance with applicable regulations and the provisions of the concession agreement (clause 7), including environmental obligations.

Operator to obtain all clearances and DTTDC to provide reasonable assistance to obtain clearances (clause 3).

Operator may sub-licence market booths to third parties provided that they are for no longer than 11 month periods, are in a form agreed by DTTDC and no more than 5 booths are licensed to one party at a time (clause 3).

Operator shall pay DTTDC (clause 4):

  • Concession fee calculated per booth payable from the signature of the agreement, paid quarterly, which shall be increased by 15% every 3 years;
  • Revenue share equal to 5% of annual gross revenue, payable from COD, payable in quarterly instalments, which shall increase to 6% from beginning of fifth year and 7% from beginning of seventh year of agreement (with incentive for early completion due to revenue share being waived for period between actual completion and scheduled completion) (clause 11).

Operator also responsible for taxes and levies (clause 4)

Operator has 30 days to meet the conditions precedent (clause 5) which are focused on obtaining clearances and execution of an escrow agreement with a bank, DTTDC and lenders for an account for receipt of all revenues and to allow the lenders can make direct disbursement to the EPC contractor.

Operator not to change ownership in the project SPV until after second anniversary of COD and only then with consent of DTTDC (clause 6).

Each party provides relatively standard form representations and warranties (clause 8).

Operator to furnish performance security equal to the concession fee.

Parking space for market is operated by DTTDC and can be charged for – not part of the concession (clause 10).

Project management board established comprising DTTDC and operator personnel, chaired by DTTDC (clause 11), meeting quarterly, to oversee and monitor performance of operator, oversee rectification of faults and monitor redressal of complaints of users etc.

Utilities (water and electricity) to be provided by DTTDC to extent that it can offer these, but if operator takes this option, operator to reimburse for usage.

Reporting and accounts (12) – standard wording

Force majeure (14) – standard wording

Dispute resolution – mutual agreement, conciliation and then 3 arbitrators under Indian Arbitration and Conciliation Act 1996

Updated: August 25, 2020