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Sheridan County School District #2 > Agreement Or Concession

Agreement Or Concession

Marketing strategy: the first step is to ensure that a business profile reaches a reasonable number of relevant bidders (reasonable if one refers to both the creation of sufficient competition and the prevention of significant costs). The company profile contains the most relevant information on topics such as the essential activities of the person concerned and the future prospects of these activities. At the same time, the financial, operational, strategic and other contributions expected by the bidders are defined (prequalification criteria). In addition, the profile refers to the existence of an information memorandum available to parties interested in a serious offer and able to meet the selection criteria to qualify for negotiations. The information memorandum should contain strategic, economic and financial information on the port or terminal concerned, the main provisions of the concession contract to provide potential tenderers with information on the institutional and legal context of the port sector, as well as the selection criteria. The way termination clauses are designed reflects the balance of power between the two parties. An operator with other port sites will not easily accept harsh termination clauses. On the other hand, a port authority should be aware that an operator could fail in the market and that valuable port land may be unused for years if the right to terminate the concession is not clearly defined. Finally, the operator`s lenders should pay close attention to the analysis of these provisions in order to guarantee the protection of their interests (cf. Box 46 and Box 47). Under a concession, the long-term use and use of port land and assets is transferred to individuals through tenders. The process for best achieving this transfer must be both efficient and transparent.

This requires a succession of steps that are logically linked and that lead to a concession of terminal activities in the best possible conditions for the government and the port authority. The steps are explained below. Example 6: Peru – Contrato de Concesión de los Ferrocarriles del Sur y Sur Oriente (Spanish) – Concession contract between the Peruvian State and a private body (Ferrocaril Transandino S.A.) which carries out the concession of the southern railway lines (Matarani/Mollendo to Cusco) and the south-eastern railway lines (Cusco to Machu Pichu). The duration of the concession is 30 years (renewable). . . .