Optional Development Obligation. 12.6.1 The Concessionaire shall have the right but not the obligation to construct and develop any unutilised land which forms part of the Project Site for building any facility, which may include permanent and temporary structures, extension of the building façade, construction of facilities for adventure sports, etc., for the benefit of the Users which by its nature may increment the Hospitality Services and may lead to the potential increase in the Revenue from the Project on or after the Project COD during the period up to [5 (five) years] prior to the expiry of the Concession Period (the “Optional Development Obligation”), provided, that it has got prior permission from the Authority of its proposal to undertake the Optional Development Obligation. In the event that the Concessionaire exercises its right to undertake the Optional Development Obligation, it shall do so at its own risk, cost and expense provided that such obligation does not affect the existing Resort and the Project Infrastructure. All the terms, conditions, rights and obligations of the Concessionaire in relation to construction and operation of the Mandatory Development Obligation including submission of Drawings in accordance with Article 12.2 shall apply mutatis mutandis for the construction, development and operation of any facility as part of the Optional Development Obligation including, submission of periodic reports and other relevant documents to the Independent Expert under Article 13, Article 14, and Article 15. Further, the Concessionaire while seeking permission from the Authority of its proposal to undertake Optional Development Obligation, shall also submit projected additional year on year Revenue from the Optional Development. The projected additional year on year Revenue shall be duly examined and certified by the Independent Engineer. After completion of Optional Development, the Concessionaire shall pay [15% (fifteen percent)] of the actual additional Revenue on yearly basis. The additional Revenue shall deemed to be part of the Concession Fee for each year of the Concession Period starting from operationalization of the Optional Development.
12.6.2 It is clarified that in the event that the Authority approves the construction and development of any Optional Development Obligation proposed to be developed by the Concessionaire in accordance with Article 12.6.1, the Authority shall be bound to perform all its obligations under this Agreement with respect to such Opt...
Optional Development Obligation a. The Concessionaire shall have the right but not the obligation to construct and develop any unutilised land which forms part of the Project Site for building any facility which may include permanent and temporary structures, extension of the building façade etc., for the benefit of the Users which by its nature may lead to the potential increase in the Revenue from the Project on or after the Project COD during the period up to 5 (five) years prior to the expiry of the Concession Period (the “Optional Development Obligation”), provided, that it obtains a prior written approval from the Authority for undertaking the Optional Development Obligation. In the event that the Concessionaire exercises its right to undertake the Optional Development Obligation, it shall do so at its own risk, cost and expense provided that such obligation does not affect the existing Project Infrastructure. All the terms, conditions, rights and obligations of the Concessionaire in relation to construction and operation of the Minimum Development Obligation including submission of Drawings in accordance with Clause 12.2 shall apply mutatis mutandis for the construction, development and operation of any facility as part of the Optional Development Obligation including, submission of periodic reports and other relevant documents to the Independent Engineer under Article 13, Article 14, and Article 15.
b. It is clarified that in the event that the Authority approves the construction and development of any Optional Development Obligation proposed to be developed by the Concessionaire in accordance with Clause 12.5.(a), the Authority shall be bound to perform all its obligations under this Agreement with respect to such Optional Development Obligation, including its obligations to pay Termination Payments to the Concessionaire in accordance with the provisions of this Agreement.
