San Jose - Caldera Toll Road Concession Agreement

Region
Latin America and Caribbean
Country
Costa Rica
Keywords
Sample PPP Agreements

 

 

Concession Agreement for the San Jose - Caldera Toll Road project entered into by and between Costa Rica’s National Concessions Council (Consejo Nacional de Concesiones) and Concesiones Viales (COVISA) for the design, planning, financing, construction, expansion, repair, maintenance and conservation of the San Jose – Caldera toll road for a maximum duration of 25 years (renewable for another 25 years) (including construction and exploitation) and with an optional “Guaranteed Minimum Income” (GMI) mechanism for the first 13 years of the concession (acceptance of which by the concessionaire guarantees certain yearly minimum incomes) (clause 3.7.4).

 

The concessionaire accepts the GMI mechanism (or not) when it submits its “economic offer”; subsequently, for each year where the GMI is valid, the concessionaire may decide to make use of the funds. Concessionaire must present its GMI offer for years 1 to 13 of the operation phase (which can be equal to or lower than the maximum amounts offered by the government in the bidding documents as shown in table 3.5 of the concession agreement). If concessionaire chooses to take the minimum income for a specific year, it must pay a guarantee (according to a formula in the contract).

 

This agreement also provides for a revenue sharing agreement for the tolls whereby government gets to keep a certain percentage of the concessionaire’s expected toll revenues (clause 3.7.6).

 

All works are owned by the State of Costa Rica.

 

Supplementary Agreement no. 1 to the Concession Agreement for the San Jose - Caldera Toll Road project (above project). The agreement extends the scope and capacity of the works and related services, and incorporates new investments to be made by the concessionaire in the additional works. The payment and risks structures remain the same from the original concession agreement (in Spanish):

 

RFP for project (above project) governed by Federal Law 7762 of 22 May 1998 (Public Works with Public Services Concession Act). The contractual arrangement will be “Concession of Public Work with Public Services” under a BTO, “non-recourse financing” scheme. The contractual figure is defined by the Concessions Act as “The administrative contract whereby the Public Administration delegates to a third party, which can be a public, private or public-private legal entity, the design, planning, financing, building, conservation, extension, or repair of any immovable public good, as well as its exploitation, rendering the services provided for in the contract in exchange for offset charged payable by users of the work or beneficiaries of the services, or any type of offset received by the Public Administration” (in Spanish).

 

Tracking Reference:

Costa Rica_San Jose Caldera Toll Road Concession Agreement_ES.pdf

 

Last Updated : Tue,2017-01-03