concessions in telecommunication industry

7/28/2019 Concessions in Telecommunication Industry

1/4

Concessions in telecommunication industry

A concession gives an operator the long term right to use all utility assets conferred on

the operator, including responsibility for all operation and investment. Asset ownership

remains with the authority. Assets revert to the authority at the end of the concession

period, including assets purchased by the operator. In a concession the operator typically

obtains its revenues directly from the consumer and so it has a direct relationship with

the consumer. A concession covers an entire infrastructure system.

The Concessionaire shall achieve Financial Close on or before the Commencement Date and

within 15 days thereof submit to the Authority one set each of the Equity Documents and the

Financing Documents.

The Concessionaire shall achieve Financial Close on or before the Commencement Date and

within 15 days thereof submit to the Authority one set each of the Equity Documents and the

Financing Documents.


2/4

Concession period commencement:

The concession period shall commence [on the date of this agreement/ on the date all the

Conditions Precedents are satisfied or waived in accordance with clause [CP clause].The

Concession hereby granted is for a period of [concession period] years including a

construction period of [construction period] years commencing from [the Commencement Date/

the date of this agreement/ specify date] and ending with on [the Expiry Date/ the []th

anniversary of commencement/ specify date] (Concession Period). However, in the event of

[Termination], the Concession Period shall mean and be limited to the period commencing

from the Commencement Date and ending on the Termination Date.

Expiry:

The Concessionaires right and obligation to carry out the Project Operations shall

terminate automatically on expiry of the Project Term unless and to the extent previously

terminated in accordance with this agreement.


3/4

Warranties:

Warranties of the Concessionaire:

The Concessionaire represents and warrants to the Authority that:

(a) it is duly organised, validly existing and in good standing under the laws of

[jurisdiction];

(b) it is a special purpose company set up solely for the purpose of implementing and

operating the Project/Project Facility in accordance with the terms of this Agreement and

that it will not during the subsistence of this Agreement undertake any other project or

business activity unrelated to the Project;

Warranties of the Authority:

The Authority represents and warrants to the Concessionaire that:

(a) The Authority has full power and authority to grant the Concession;

(b) The Authority has taken all necessary action to authorise the execution, delivery

and performance of this Agreement;

(c) This Agreement constitutes the Authority's legal, valid and binding obligation

enforceable against it in accordance with the terms hereof.

(d) There are no suits or other legal proceedings pending or threatened against the

Authority in respect of the Project Site or the Project, which has a Material Adverse


4/4

Effect.

Concessionaire indemnities to the Authority:

The Concessionaire shall indemnify, defend and hold the Authority harmless against any and

all proceedings, actions and third party claims arising out of a breach by Concessionaire

of any of its obligations under this Agreement except to the extent that any such claim has

arisen due to breach by the Authority of any of its obligations under this Agreement or a

Force Majeure Event which is a Political Event.

The Authoritys indemnities to the Concessionaire:

The Authority will, indemnify, defend and hold harmless the Concessionaire against any and

all proceedings, actions, third party claims for loss, damage and expense of whatever kind

and nature arising out of breach by the Authority, its officers, servants and agents of any

obligations of the Authority under this Agreement except to the extent that any such claim

has arisen due to breach by the Concessionaire of any of its obligations under this

Agreement.