A guidebook on public-private partnership in infrastructure


Engagement of subcontractors



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ESCAP-2011-MN-Guidebook-on-PPP-infrastructure

Engagement of subcontractors: 
The purpose, general rules, applicable areas, 
obligations of the private company in engaging subcontractors are mentioned in this 
section. 


64 
A Guidebook on Public-Private Partnership in Infrastructure
 
 

Handover of project facility:
Time, obligations of concessionaire, defect liability, 
rights of agency, procedure of handover, and valid discharge are the major points in 
this section. 
Performance requirements: 
This covers the details of service delivery and other 
technical, quality and safety standards
32
; availability of contracted services and 
procedures for variations of service scope. Normally, these are included in a 
separate schedule annexed to the main agreement. 
Change of scope: 
This section explains the necessity of change, admissible 
changes and the defined procedure for making such changes. 
Payments and financial matters: 
This section considers the provision of types and 
period of payments (including mode of payment, valid discharge, dates of payment, 
etc); procedure for payment; calculation of the amount of payment; payment 
adjustment; bonus and reduction in payment; security; sinking funds; VAT and other 
taxes; performance security; supervision charges of the implementing authority; and 
monitoring expenses. 
Tariff, fees, levy and their collection and appropriation: 
The implementing 
agency’s rights, concessionaire’s obligations, tariff structure and amount, exemption 
and discrimination, subsidization/cross-subsidization, reviewing of tariff, tariff 
adjustment, cost of tariff review, fees and levy, integration of fees and tariff with other 
relevant operators, appropriation, revision of fees, collection and payment/transfer 
mechanism are included in this section. It may also include accounting standards, 
information on cost of operation, tariff review process and mechanism. 
Insurance: 
This section specifies the types of insurance the private party (project 
company/concessionaire) in contract is required to have, the proof of such insurance 
covers, and application of insurance proceeds. 

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