Nature of Concession agreement

• Build own Operate and Transfer Agreement : An agreement whereby the developer undertakes to finance, construct, maintain and operate a project and whereby such project is to vest in the developer for a specified period. During the period of operation of the project by the developer, he may be permitted to charge user fees specified in an agreement. The developer is liable to transfer the project to the State Government, the Government agency or, as the case may be, the specified Government agency after the expiry of the period of operation.
• Build Own Operate and Maintain Agreement: An agreement whereby a developer undertakes to finance, construct, operate and maintain a project and whereby such project is to vest in the developer for specified period. During the period of operation of the project, he may be permitted to charge user fees specified in the agreement.
• Build and Transfer Agreement : An agreement whereby developer undertakes to finance and construct a project. After the completion of the project, the developer shall transfer the project to the State Government, the Government agency or, as the case may be, the specified Government agency. The developer shall be paid such amount as is fixed in amortization schedule specified in the agreement.
• Build Lease and Transfer Agreement : An agreement whereby a developer undertakes to finance and construct the project. On completion of the project, the developer hands it over to the State Government, the Government agency or, as the case may be, the specified Government agency for operation under a lease agreement for period specified in the agreement after the expiry of which the project stands transferred to the State Government, the Government agency or, as the case may be, the specified Government agency.
• Build Transfer and Operate Agreement : An agreement whereby the developer undertakes to finance and construct the project. On completion of the project, the developer transfers the project to the State Government, the Government agency or, as the case may be, the specified Government agency which permits the developer to operate the project on its behalf for a period specified in the agreement.
• Lease Management Agreement : An agreement whereby the State Government, the Government agency or the specified Government agency leases a project owned by the State Government, the Government agency or, as the case may be, the specified Government agency to the person who is permitted to operate and maintain the project for the period specified in the agreement and to charge user fees therefor.
• Management Agreement : An agreement whereby the State Government, the Government agency or the specified Government agency entrusts the operation and management of a project to a person for the period specified in the agreement on payment of specified consideration. In such agreement the State Government, the Government agency or, as the case may be, the specified Government agency may charge the user fees and collect the same either itself or entrust the collection for consideration to any person who shall after collecting the user fees pay the same to the State Government, the Government agency or, as the case may be, the specified Government agency.
• Rehabilitate Operate and Transfer agreement : An agreement whereby an existing project is vested in a person to renovate, operate and maintain for the period specified in the agreement after the expiry of which the project shall be transferred to the State Government, the Government agency or, as the case may be, the specified Government agency. During the period of operation of the project by the developer, he may be permitted to charge user fees specified in the agreement.
• Rehabilitate own Operate and Maintain Agreement : An agreement whereby an existing project is vested in a person to renovate, operate and maintain. The person shall be permitted to charge user fees as specified in the agreement.
• Service Contract Agreement : An agreement whereby a person undertakes to perform a service to the State Government, the Government agency or the specified Government agency for a specified period. The State Government, the Government agency or, as the case may be, the specified Government agency shall pay him an amount according to the agreed schedule.
• Supply Operate and Transfer Agreement : An agreement whereby a person supplies to the State Government, the Government agency or the specified Government agency the equipment and machinery for a project and undertakes to operate the project for a period and consideration specified in the agreement. During the operation of the project, he shall undertake to train employees of the State Government, the Government agency or, as the case may be, the specified Government agency to operate the project.
• Joint Venture Agreement : An agreement whereby the State Government, the Government agency or the specified Government agency enters into an agreement with a developer to jointly finance, construct, operate and maintain a project for a period specified in the agreement after the expiry of which the project shall be transferred to the State Government, the Government agency or, as the case may be, the specified Government agency.

STATEMENT

For rapid industrialisation, balanced development and improvement of quality of life of the people of the State, infrastructure facilities of higher quality and on a large scale are required to be provided. For that purpose, it is essential that besides the State Government and the Government agencies, private sector is also involved in substantial manner in providing infrastructure facilities in the State. For that purpose it is necessary to provide a frame work to the private sector participation in financing, construction, operation and maintenance of infrastructure projects in the State.

At present the Gujarat Infrastructure Development Board is constituted to promote participation of private sector in the development of infrastructure facilities in the State. It is considered necessary to replace the existing Board by a Statutory Board.

For this purpose, a Bill called the Gujarat infrastructure Development Bill, 1999 was published with a view to introduce in the last session of the Gujarat Legislative Assembly but could not be taken up by the House for want of time.

As the Gujarat Legislative Assembly is not in session, this Ordinance is promulgated to achieve the aforesaid objects.

Gandhinagar, Sundar Singh Bhandari

Dated the April, 1999. Governor of Gujarat.