In addition to the certification body and the financial documents concluded by the concessionaire, lenders must also ensure the maintenance of the concessionaire`s other contractual agreements, such as. B Epc (Engineering, Procurement and Construction) agreements, operation and maintenance contracts („O&M“) and toll agreements (if applicable). The nominee of the lender could have the following options: (i) take over existing contracts for which novation instruments are to be executed; or (ii) enter into new agreements with existing contractors; or (iii) to appoint new contractors of its choice. These could be achieved at the same time as the novation of the CA. In order to facilitate the recovery of debts by the concessionaire for the development of the project and to ensure quasi-security, the lenders of the project have the possibility to „replace“ the project by the conceding authority, usually by a tripartite agreement between the conceding authority, the concessionaire and the lenders or their representative, called a substitution agreement. This right of representation allows lenders to replace the concessionaire with another body designated by the lenders in the event of the concessionaire`s omission from the concession contract or financing agreements, subject to the agreement of the concession authority. The actual process of such substitution under CAs, carried out with the National Highways Authority of India („NHAI“) is the subject of this article. Last year, the Department of Transportation made it mandatory for states to sign the SSA, under which states must acquire land for highway construction in order to obtain central funds. Nath said some national governments, including Tamil Nadu and Bihar, have yet to sign the pact seeking clarification on some of the provisions of the SSA, such as the levying of local taxes and additional tolls. Under different public-private partnership (PPP) models for the acquisition of infrastructure in different sectors, the development of a project is awarded as a concession. Upon award, a concession contract („CA“) is concluded between the granting authority and the concessionaire, in which the concessionaire obtains certain rights and obligations with respect to the value of the infrastructure, but not full ownership of the asset.

Even if a concessionaire has „ownership“ of the asset, that „ownership“ is returned to the relevant government authority at the end of the concession period. . . .