Common use of Modification in the Concession Period Clause in Contracts

Modification in the Concession Period. 29.2.1 Subject to the provisions of Clause 29.1.2, in the event Actual Average Traffic shall have fallen short of the Target Traffic, then for every 1% (one per cent) shortfall as compared to the Target Traffic, the Concession Period shall, subject to payment of Concession Fee in accordance with this Agreement, be increased by 1.5% (one point five per cent) thereof; provided that such increase in Concession Period shall not in any case exceed 20% (twenty per cent) of the Concession Period. For the avoidance of doubt, and by way of illustration, it is agreed that in the event of a shortfall of 10.6% (ten point six per cent) in Target Traffic, the Concession Period shall be increased by 15% (fifteen per cent) thereof. 29.2.2 Subject to the provisions of Clause 29.1.2, in the event Actual Average Traffic shall have exceeded the Target Traffic, then for every 1% (one per cent) excess as compared to the Target Traffic, the Concession Period shall be reduced by 0.75% (zero point seven five per cent) thereof; provided that such reduction in Concession Period shall not in any case exceed 10% (ten per cent) thereof. For the avoidance of doubt and by way of illustration, it is agreed that in the event of an excess of 8.7% (eight point seven per cent) in Target Traffic, the Concession Period shall be reduced by 6% (six per cent) thereof: Provided further that in lieu of a reduction in Concession Period under this Clause29.2.2, the Concessionaire may elect to pay, in addition to the Concession Fee that would be due and payable if the Concession Period were not reduced hereunder, a further premium equal to 25% (twenty five per cent) of the Realisable Fee, and upon notice given to this effect by the Concessionaire no later than two years prior to the Transfer Date contemplated by this Clause 29.2.2, the Authority shall waive the reduction in Concession Period hereunder forthwith. 29.2.3 Notwithstanding anything to the contrary contained in this Agreement, if the average daily traffic of PCUs in any Accounting Year shall exceed the designed capacity of the Project Highway, the Authority at its option may cause preparation of detailed project report (DPR), the said DPR inter-alia will assess the cost as may have to be incurred for augmenting the capacity of the project highway such that its capacity shall have increased sufficiently for carrying the then current traffic in accordance with the corresponding provisions of the Indian Roads Congress publication or any substitute thereof and extension of Concession Period, if any, that may be required to yield the concessionaire a post-tax return on equity (Equity IRR) of 16% per annum , such assessment being made at an assumed debt:: equity ratio of 70:30. Such extension of Concession period shall be however limited to 5(five) years. For avoidance of doubt it is stated that there shall be no reduction in the Concession period as originally accepted. The authority may thereafter, at their sole option, issue a notice to the Concessionaire, (to be responded within a period of three months from the date of such notice), to undertake within six months of such notice, augmentation so determined by the authority. For this purpose, all realizable fees that shall accrue from three months from the date of issuance of the aforesaid notice by the Authority, requiring the Concessionaire to procure capacity augmentation under this clause, shall be included in the assessment of revenue generated against the capacity augmentation and the equity IRR calculations as aforesaid shall be so based on such revenues. On refusal or non-acceptance by the Concessionaire to undertake such augmentation, either absolutely or on such extension of concession period as assessed under the DPR, or on the failure of the Concessionaire to undertake such augmentation on the due date so intimated by the authority, an indirect political event shall be deemed to have occurred and the authority may in it’s discretion terminate this agreement by issuing a termination notice and making a termination payment under and in accordance with the provisions of clause 34.9.2; without the authority being liable to issue any further notice under this provision. For the avoidance of doubt, the Parties agree that an average daily traffic of 120000 PCUs shall be deemed to be the design capacity of the Six-Lane Project Highway. 29.2.4 If the Concessionaire shall have, prior to issue of a Termination Notice under Clause 29.2.3, completed the construction works necessary for augmenting the capacity of the Project Highway such that its capacity shall have increased sufficiently for carrying the then current traffic in accordance with the corresponding provisions of the Indian Roads Congress Publication No. IRC - 64, 1990 or any substitute thereof, the Indirect Political Event specified in Clause 29.2.3 shall be deemed to have been cured.

Appears in 2 contracts

Samples: Concession Agreement, Concession Agreement

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Modification in the Concession Period. 29.2.1 Subject to the provisions of Clause 29.1.2, in the event Actual Average Traffic shall have fallen short of the Target Traffic, then for every 1% (one per cent) shortfall as compared to the Target Traffic, the Concession Period shall, subject to payment of Concession Fee in accordance with this Agreement, be increased by 1.5% (one point five per cent) thereof; provided that such increase in Concession Period shall not in any case exceed 20% (twenty per cent) of the Concession Period. For the avoidance of doubt, and by way of illustration, it is agreed that in the event of a shortfall of 10.6% (ten point six per cent) in Target Traffic, the Concession Period shall be increased by 15% (fifteen per cent) thereof. 29.2.2 Subject to the provisions of Clause 29.1.2, in the event Actual Average Traffic shall have exceeded the Target Traffic, then for every 1% (one per cent) excess as compared to the Target Traffic, the Concession Period shall be reduced by 0.75% (zero point seven five per cent) thereof; provided that such reduction in Concession Period shall not in any case exceed 10% (ten per cent) thereof. For the avoidance of doubt and by way of illustration, it is agreed that in the event of an excess of 8.7% (eight point seven per cent) in Target Traffic, the Concession Period shall be reduced by 6% (six per cent) thereof: Provided further that in lieu of a reduction in Concession Period under this Clause29.2.2Clause 29.2.2, the Concessionaire may elect to pay, in addition to the Concession Fee that would be due and payable if the Concession Period were not reduced hereunder, a further premium equal to 25% (twenty five per cent) )] of the Realisable FeeFee in the respective year(s), and upon notice given to this effect by the Concessionaire no later than two 2 (two) years prior to the Transfer Date contemplated by under this Clause 29.2.2, the Authority MPRDC shall waive the reduction in Concession Period hereunder forthwithand recover the Concession Fee and the aforesaid premium for the period waived hereunder. 29.2.3 Notwithstanding anything to the contrary contained in this Agreementagreement, if the average daily traffic of PCUs in any Accounting Year accounting year shall exceed the designed designated capacity of the Project Highwayproject highway, the Authority MPRDC at its it’s option may cause preparation of a detailed project report (DPR). The said DPR, the said DPR inter-alia will assess the cost as may have to be incurred for augmenting the capacity of the project highway such that its capacity shall have increased sufficiently for carrying the then current traffic in accordance with the corresponding provisions of the Indian Roads India Road Congress publication No. IRC-64,1990 or any substitute thereof and extension of Concession Period, if any, that may be required to yield the concessionaire Concessionaire a post-tax return retune on equity (Equity IRR) of 16% per annum annum, such assessment being made at an assumed debt:: equity ratio of 70:30. Such extension of Concession period Period shall be however limited to 5(five5 (five) years. For avoidance of doubt doubt, it is stated that there shall be no reduction in the Concession period Period as originally accepted. The authority MPRDC may thereafter, at their sole option, issue a notice to the Concessionaire, (to be responded within a period of three months from the date of such notice), to undertake within six months of such notice, augmentation so determined by the authority. For this purpose, all realizable fees that shall accrue from three months from the date of issuance of the aforesaid notice by the Authority, requiring the Concessionaire to procure capacity augmentation under this clause, shall be included in the assessment of revenue generated against the capacity augmentation and the equity IRR calculations as aforesaid shall be so based on such revenuesMPRDC. On refusal or non-non- acceptance by the Concessionaire to undertake such augmentation, either absolutely or on such extension of concession period Concession Period as assessed under the DPR, or on the failure of the Concessionaire to undertake such augmentation on the due date so intimated by the authority, MPRDC an indirect political event shall be deemed to have occurred and the authority MPRDC may in it’s its’ discretion terminate this agreement by issuing a termination notice and making a termination payment under and in accordance with the provisions of clause Clause 34.9.2; without the authority MPRDC being liable to issue any further notice under this provision. For the avoidance of doubt, the Parties agree agrees that an average daily traffic of 120000 25000 PCUs shall be deemed to be the design designed capacity of the Six-Two Lane Project Highway. 29.2.4 If the Concessionaire shall have, prior to issue of a Termination Notice under Clause 29.2.3, completed the construction works necessary for augmenting the capacity of the Project Highway such that its capacity shall have increased sufficiently for carrying the then current traffic in accordance with the corresponding relevant provisions of the Indian Roads Congress Publication No. IRC - 64, 1990 or any substitute thereof, the Indirect Political Event specified in Clause 29.2.3 shall be deemed to have been cured.

Appears in 1 contract

Samples: Concession Agreement

Modification in the Concession Period. 29.2.1 Subject to the provisions provision of Clause 29.1.2, in the event Actual Average Traffic shall have fallen short of the Target Traffic, then for every 1% (one per centpercent) shortfall as compared to the Target Traffic, the Concession Period shallshall , subject to payment of Concession Fee in accordance with this Agreement, be increased by 1.5% (one point five per centpercent) thereof; provided that such increase in Concession Period shall not in any case exceed 20% (twenty per centpercent) of the Concession Period. For the avoidance of doubt, and by way of illustration, it is agreed that in the event of a shortfall of 10.6% (ten point six per centpercent) in Target Traffic, the Concession Period shall be increased by 15% (fifteen per centpercent) thereof. 29.2.2 Subject to the provisions of Clause 29.1.2, 29.1.2 in the event Actual Average Traffic shall have exceeded the Target Traffic, then for every 1% (one per centpercent) excess as compared to the Target Traffic, the Concession Period shall be reduced by 0.75% (zero point seven five per centone percent) thereof; provided that such reduction in Concession Period shall not in any case exceed 10% (ten per centpercent) thereof. For the avoidance of doubt and by way of illustration, it is agreed that in the event of an excess of 8.7% (eight point seven per centpercent) in Target Traffic, the Concession Period shall be reduced by 6% (six per centpercent) thereof: . Provided further that in lieu of a reduction in Concession Period under this Clause29.2.2Clause 29.2.2, the Concessionaire may elect to pay, in addition to the Concession Fee that would be due and payable if the Concession Period were not reduced hereunder, a further premium equal to 25% (twenty five per cent) of the Realisable Fee, and upon notice given to this effect by the Concessionaire no later than two years prior to the Transfer Date contemplated by this Clause 29.2.2, the Authority Government shall waive the reduction in Concession Period hereunder forthwith. 29.2.3 Notwithstanding anything to the contrary contained in this Agreement, if the average daily traffic of PCUs in any Accounting Year shall exceed the designed capacity of the Project Highway, Highway and shall continue to exceed the Authority at its option may cause preparation of detailed project report designed capacity for 3 (DPR), the said DPR inter-alia will assess the cost as may have to be incurred for augmenting the capacity of the project highway such that its capacity shall have increased sufficiently for carrying the then current traffic in accordance with the corresponding provisions of the Indian Roads Congress publication or any substitute thereof and extension of Concession Period, if any, that may be required to yield the concessionaire a post-tax return on equity (Equity IRRthree) of 16% per annum , such assessment being made at an assumed debt:: equity ratio of 70:30. Such extension of Concession period shall be however limited to 5(five) years. For avoidance of doubt it is stated that there shall be no reduction in the Concession period as originally accepted. The authority may Accounting Years following thereafter, at their sole option, issue a notice to the Concessionaire, (to be responded within a period of three months from the date of such notice), to undertake within six months of such notice, augmentation so determined by the authority. For this purpose, all realizable fees that shall accrue from three months from the date of issuance of the aforesaid notice by the Authority, requiring the Concessionaire to procure capacity augmentation under this clause, shall be included in the assessment of revenue generated against the capacity augmentation and the equity IRR calculations as aforesaid shall be so based on such revenues. On refusal or non-acceptance by the Concessionaire to undertake such augmentation, either absolutely or on such extension of concession period as assessed under the DPR, or on the failure of the Concessionaire to undertake such augmentation on the due date so intimated by the authority, an indirect political event Indirect Political Event shall be deemed to have occurred and the authority MPRDC may in it’s its discretion terminate this agreement Agreement by issuing a termination notice Termination Notice and making a termination payment Termination Payment under and in accordance with the provisions of clause Clause 34.9.2; without provided that before issuing such Termination Notice, the authority being liable MPRDC shall inform the Concessionaire of its intention and grant 180 (one hundred and eighty) days time to make a representation, and may after the expiry of such 180 (one hundred and eighty) days period, whether or not it is in respect of such representation, in its sole discretion issue any further notice under this provisionthe Termination Notice. For the avoidance of doubt, the Parties agree that an average daily traffic of 120000 60,000 PCUs shall be deemed to be the design designed capacity of the SixFour-Lane Project Highway. 29.2.4 If the Concessionaire shall have, prior to issue of a Termination Notice under Clause 29.2.3, completed the construction works Construction Works necessary for augmenting the capacity of the Project Highway such that its capacity shall have increased sufficiently for carrying the then current traffic in accordance with the corresponding provisions of the Indian Roads Congress Publication No. IRC - 64, 1990 or any substitute thereof, the Indirect Political Event specified in Clause 29.2.3 shall be deemed to have been cured.

Appears in 1 contract

Samples: Concession Agreement

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Modification in the Concession Period. 29.2.1 Subject to the provisions of Clause 29.1.2, in the event Actual Average Traffic shall have fallen short of the Target Traffic, then for every 1% (one per cent) shortfall as compared to the Target Traffic, the Concession Period shall, subject to payment of Concession Fee in accordance with this Agreement, be increased by 1.5% (one point five per cent) thereof; provided that such increase in Concession Period shall not in any case exceed 20% (twenty per cent) of the Concession Period. For the avoidance of doubt, and by way of illustration, it is agreed that in the event of a shortfall of 10.6% (ten point six per cent) in Target Traffic, the Concession Period shall be increased by 15% (fifteen per cent) thereof. 29.2.2 Subject to the provisions of Clause 29.1.2, in the event Actual Average Traffic shall have exceeded the Target Traffic, then for every 1% (one per cent) excess as compared to the Target Traffic, the Concession Period shall be reduced by 0.75% (zero point seven five per cent) thereof; provided that such reduction in Concession Period shall not in any case exceed 10% (ten per cent) thereof. For the avoidance of doubt and by way of illustration, it is agreed that in the event of an excess of 8.7% (eight point seven per cent) in Target Traffic, the Concession Period shall be reduced by 6% (six per cent) thereof: Provided further that in lieu of a reduction in Concession Period under this Clause29.2.2Clause 29.2.2, the Concessionaire may elect to pay, in addition to the Concession Fee that would be due and payable if the Concession Period were not reduced hereunder, a further premium equal to 25% (twenty five per cent) of the Realisable FeeFee in the respective year(s), and upon notice given to this effect by the Concessionaire no later than two 2 (two) years prior to the Transfer Date contemplated by under this Clause 29.2.2, the Authority Government shall waive the reduction in Concession Period hereunder forthwithand recover the Concession Fee and the aforesaid premium for the period waived hereunder. 29.2.3 Notwithstanding anything to the contrary contained in this Agreement, if the average daily traffic of PCUs in any Accounting Year shall exceed the designed capacity of the Project Highway, Highway and shall continue to exceed the Authority at its option may cause preparation of detailed project report designed capacity for 3 (DPR), the said DPR inter-alia will assess the cost as may have to be incurred for augmenting the capacity of the project highway such that its capacity shall have increased sufficiently for carrying the then current traffic in accordance with the corresponding provisions of the Indian Roads Congress publication or any substitute thereof and extension of Concession Period, if any, that may be required to yield the concessionaire a post-tax return on equity (Equity IRRthree) of 16% per annum , such assessment being made at an assumed debt:: equity ratio of 70:30. Such extension of Concession period shall be however limited to 5(five) years. For avoidance of doubt it is stated that there shall be no reduction in the Concession period as originally accepted. The authority may Accounting Years following thereafter, at their sole option, issue a notice to the Concessionaire, (to be responded within a period of three months from the date of such notice), to undertake within six months of such notice, augmentation so determined by the authority. For this purpose, all realizable fees that shall accrue from three months from the date of issuance of the aforesaid notice by the Authority, requiring the Concessionaire to procure capacity augmentation under this clause, shall be included in the assessment of revenue generated against the capacity augmentation and the equity IRR calculations as aforesaid shall be so based on such revenues. On refusal or non-acceptance by the Concessionaire to undertake such augmentation, either absolutely or on such extension of concession period as assessed under the DPR, or on the failure of the Concessionaire to undertake such augmentation on the due date so intimated by the authority, an indirect political event Indirect Political Event shall be deemed to have occurred and the authority Government may in it’s its discretion terminate this agreement Agreement by issuing a termination notice Termination Notice and making a termination payment Termination Payment under and in accordance with the provisions of clause Clause 34.9.2; without provided that before issuing the authority being liable Termination Notice, the Government shall inform the Concessionaire of its intention to issue any further notice under this provisionsuch Termination Notice and grant a period of 180 (one hundred and eighty) days for making a representation, and may, after the expiry of such period, whether or not it has received such representation, in its sole discretion issue the Termination Notice. For the avoidance of doubt, the Parties agree that an average daily traffic of 120000 25000 PCUs shall be deemed to be the design designed capacity of the SixTwo-Lane Project Highway. 29.2.4 If the Concessionaire shall have, prior to issue of a Termination Notice under Clause 29.2.3, completed the construction works necessary for augmenting the capacity of the Project Highway such that its capacity shall have increased sufficiently for carrying the then current traffic in accordance with the corresponding relevant provisions of the Indian Roads Congress Publication No. IRC - 64, 1990 or any substitute thereof, the Indirect Political Event specified in Clause 29.2.3 shall be deemed to have been cured.

Appears in 1 contract

Samples: Concession Agreement

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