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CHAPTER
IV
PROCEDURE
FOR PERFORMANCE OF FUNCTIONS OF THE BOARD
15.
PROCEDURE FOR IDENTIFYING PROJECTS:
(1)
For the identification of projects for private sector participation
in infrastructure development in pursuance of section 14, the Board
may consider suggestions from government agencies or persons engaged
in the business of developing or implementing infrastructure projects.
(2)
The Board may itself conduct or have conducted on its behalf such preliminary
investigations as are necessary to establish the prima facie suitability
of the project for privates sector participation within the parameters
for a concession agreement or arrangement given in section 16 in identifying
the projects which can be developed for privates sector participation.
(3)
The Government agencies may opt to undertake the development of such
identified projects on their own or with the assistance of the Board.
16.
PARAMETERS FOR CONCESSION AGREEMENT OR ARRANGEMENT:
The following parameters for a concession agreement or arrangement shall
define the suitability of a project for inviting private sector participation
namely: -
(a)
the concession agreement or arrangement may provide for the transfer
of a project taken up with the private sector participation to the Government
or its agencies not later than a period of 99 years from the date of
agreement or arrangement of implementation of a project;
(b)
the concession agreement or arrangement may provide for financial participation
by the Government or its agencies in any project up to a maximum of
20 % of the project cost and the actual nature and quantum of this financial
participation shall be based on the processes of due diligence and competitive
bidding provided in the regulations framed by the Board for this purpose;
(c)
the concession agreement or arrangement may provide for such incentives
to the project as are admissible under the concerned sectoral policy
of the Government to promote private sector participation or investment;
(d)
the concession agreement or arrangement may provide for guarantees by
the State Government or Government agencies in respect of liability
of any Government agency with regard to a project;
(e)
the concession agreement or arrangement may provide for opening and
operation of an escrow account with respect to any payments to be made
to the project by the State Government or any Government agency or any
other person or persons;
(f)
the concession agreement or arrangement may provide for appropriate
modes and terms for transfer of Government land and acquisition of private
land for the purposes of project implementation;
(g) the concession agreement or arrangement may provide for right to
develop land for such purposes as are admissible under the relevant
statute; and
(h)
the concession agreement or arrangement may provide for the levy of
the charges for the facilities or services provided by the project.
(i)
the transfer of a project taken up with the private sector participation
to the Government or its agencies the transfer of a project taken up
with the private sector participation to the Government or its agencies
the transfer of a project taken up with the private sector participation
to the Government or its agencies to the Government or its agencies
For the identification of projects for private sector participation
in infrastructure development in pursuance of section 14, the Board
may consider suggestions from government agencies or persons engaged
in the business of developing or implementing infrastructure projects.
17. PROCEDURE FOR IMPLEMENTING
PROJECT DEVELOPMENT:
(1)
In deciding the manner in which an identified project is to be developed
for the private sector participation from amongst the options available
under section 14, the Board shall have regard to its own capabilities,
offers available for collaboration by other agencies and any agreement
or arrangement entered into by the government for this purpose with
any person and from such special purpose vehicles, companies or entities
on its own or as joint ventures as may be prescribed by regulations.
(2) In considering a proposal for project development by private sector
participation under section 14, the Board shall ensure that any exclusive
right for project development conferred on such persons is limited to
a specified period.
18.
COVERAGE OF RISKS IN CONCESSION AGREEMENT OR
ARRANGEMENT:
(1)
The Board shall ensure that nay concession agreement or arrangement
formulated by Board under section 14 is in consonance with the parameters
given in section 16 and contains all necessary covenants to take care
of the risks associated with the concerned project.
(2)
The concession agreement or arrangement shall strive for the optimum
contractual structure with regard to the need to balance the risks of
stakeholders, maximize efficiency and minimize costs as may be prescribed
by the regulations.
19.
BOARD TO FORM ENTITIES FOR PROJECT IMPLEMENTATION:
In order to ensure implementation of a project developed under this
Act, the Board may form such special purpose vehicles, companies or
entities on its own or as joint ventures as are deemed necessary for
this purpose, keeping in view the need to comply with the conditions
outlined in section 16 with regard to the involvement of Government
or its agencies.
20.
PROCEDURE FOR INVITING PRIVATE SECTOR PARTICIPATION
IN DEVELOPED
PROJECT:
(1)
In inviting private sector participation and making recommendations
to the Government under section 14, the Board shall follow a selection
process which adheres to accepted norms of transparency and cost effectiveness
and the Board shall frame the regulations to lay down the situations
where competitive bidding method or other methods shall be followed.
(2)
In making recommendations with regard to a private sector participant
with respect to a project developed under section 14, the Board may recommend
grant of first right of refusal to the person developing the project,
however, such first right of refusal shall be granted only on the basis
of an appropriate procedure, which adheres to accepted norms of transparency
and cost effectiveness.
21.
FEES:
(1) The Board may charge such fee, for carrying out any of its functions,
as prescribed by regulations or in terms of any agreement or arrangement
entered into by it.
(2)
The Board may also permit any person developing a project under section
14 to receive a similar amount as fee, if the project developed by such
person is undertaken by any other person.
22.
PPROCEDURE TO RAISE RESOURCES:
(1)
For raising resources for financing development expenditure under the
State Plan in pursuance of section 14, the Board shall make procedure
consistent with the need to ensure transparency and cost effectiveness.
(2)
The Board may take the assistance of recognized financial institutions
and reputed arrangers in performing this function.
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