tAirports Authority of India

AIRPORTS AUTHORITY OF INDIA

MULTI LEVEL CAR PARK WITH COMMERCIAL DEVELOPMENT AT CHENNAI AIRPORT ON BUILD OWN OPERATE & TRANSFER (BOOT) MODE

CONCESSION AGREEMENT

AIRPORTS AUTHORITY OF INDIA Rajiv Gandhi Bhawan, Safdarjung Airport, New Delhi – 110003

Concession Agreement-MLCP, Chennai

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Airports Authority of India

CONCESSION AGREEMENT TABLE OF CONTENT DESCRIPTION CONCESSION AGREEMENT ARTICLE 1 DEFINITIONS AND INTERPRETATIONS 1.1 DEFINITIONS 1.2 MEASUREMENTS AND ARITHMETIC CONVENTIONS 1.3 PRIORITY OF CONTRACT DOCUMENTS AND ERRORS/DISCREPENCIES ARTICLE 2 GRANT OF CONCESSION 2.1 GRANT OF CONCESSION 2.2 CONCESSION PERIOD 2.3 RESTRICTION OF LICENSING THE USE OF THE PROJECT FACILITY OR ANY PART THEREOF ARTICLE 3 CONSIDERATION TO AAI ARTICLE 4 PROJECT DEVELOPMENT AND OPERATIONS ARTICLE 5 RIGHTS AND OBLIGATIONS ARTICLE 6 RESTRICTION ON CHANGES IN DEVELOPER & SPV ARTICLE 7 INSURANCE ARTICLE 8 ACCOUNTS AND AUDIT ARTICLE 9 INDEMNITY ARTICLE 10 FORCE MAJEURE ARTICLE 11 TERM AND TERMINATION ARTICLE 12 DISPUTE RESOLUTION 12.1 AMICABLE RESOLUTION 12.2 ARBITRATION ARTICLE 13 REPRESENTATIONS AND WARRANTIES, DISCLAIMER 13.1 REPRESENTATIONS AND WARRANTIES OF CONCESSIONAIRE 13.2 OBLIGATION TO NOTIFY CHANGE ARTICLE 14 MISCELLANEOUS 14.1 INTEREST AND RIGHT OF SET OFF 14.2 GOVERNING LAW AND JURISDICTION 14.3 WAIVER 14.4 SURVIVAL 14.5 AMENDMENTS 14.6 NOTICES 14.7 SEVERABILITY 14.8 NO PARTNERSHIP 14.9 LANGUAGE 14.10 EXCLUSION OF IMPLIEND WARRANTIES 14.11 COUTERPARTS SCHEDULE A – PLANS/DRAWINGS OF THE SITE AND SPECIFIED AREA SCHEDULE B - CONSORTIUM AGREEMENT / MEMORANDUM OF AGREEMENT Page No. 3-4 5-8 5-7 8 8 9-10 9 10 10-11 12-13 13-28 29-32 33 34 35 36 37-38 39-41 42-43 42 42-43 44-45 44-45 45 46-48 46 46 46 46-47 47 47 47 48 48 48 48 49 50-52

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Airports Authority of India

CONCESSION AGREEMENT

This Agreement is executed on this the ___________day of ____________(Month), Two Thousand and Ten at New Delhi BY AND BETWEEN Airports Authority of India (AAI), a Public Sector Undertaking having its registered office at Rajiv Gandhi Bhawan, Safdarjung Airport, New Delhi-110 003 (hereinafter referred to as “AAI” which expression shall unless repugnant to the context include its successors and assigns) of the One Part, AND M/s________________________________ Ltd., a company incorporated under the provisions of the Companies Act, 1956, having its registered office at ______________________________(hereinafter referred to as the “Concessionaire” which expression shall unless repugnant to the context include the successors and permitted assigns) of the Other Part WHEREAS: A. i) AAI has been established with the principal object of inter-alia, Planning, developing, constructing, maintaining and operating airports including runways, taxiways, aprons and terminal and ancillary buildings at airport and civil enclaves; Providing air traffic control and communication, navigation and surveillance services; All other functions such as cargo, security etc taking into consideration the safety aspects etc. The AAI Act 1994 enacted by an Act of Parliament provides for constitution of Airports Authority of India for better administration and cohesive management of airports and civil enclaves. B. Considering the public utility services rendered by AAI and with the aim of subsidizing the charges for the passengers and promoting the use of airports, AAI has been authorized to develop commercial facilities at the airports and generate revenues there from; In pursuance of the above, AAI decided to undertake the project of Multi level car park with commercial development at Chennai Airport on Build Own Operate & Transfer (BOOT) mode. The area is described and deliberated in Plan attached hereto as Schedule ‘A’. The Car Park will consist of 03 (three) basement levels below the Ground Level. In addition, part of Ground Level
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ii) iii)

C.

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will be used for parking. The balance Ground Level and additional area on Mezzanine Floor will be put to commercial use. The total area of multi level car park is 56,283 sqm (approx.), out of which 7,375 sqm (approx.) is earmarked for commercial use. D. AAI proposed to grant to a selected person a Concession to design, develop, procure, finance, construct, manage, maintain the “Multi Level Car Park with Commercial Development at Chennai Airport on Build Own operate & Transfer Mode” (hereinafter called the ‘Project’) for the period of 30 years. AAI invited proposals for selection of Concessionaire for the Project on a competitive basis through the RFP notice No.AAI/ADC/MLCP/02/2010 and after evaluation of the bids received, AAI has accepted the bid of the Concessionaire herein and has issued them a Letter of Acceptance(‘LOA’) bearing No.____________ dated _____________, requiring inter alia, the execution of this Concession Agreement within 30(Thirty) days thereof after the satisfaction of all conditions precedent specified in the Bid and the LoA dated………… The concessionaire has submitted the requisite Performance Security Deposit of INR 25 crores (Rupees Twenty Five Crores) to AAI. The Concessionaire represents and warrants that it/they have duly fulfilled all the terms and conditions necessary for the execution of this Agreement as per the terms contained in the bidding documents and are in a position to execute this Agreement and implement the Project as envisaged in the Bid and this Agreement. NOW THEREFORE, in lieu of the mutual promise and consideration set out herein AAI and the Concessionaire (each individually a “Party” hereto, and collectively the “Parties”) hereby agree as under.

E.

F.

G.

H.

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ARTICLE 1 DEFINITIONS AND INTERPRETATION

1.1

Definitions In this Agreement, the following words and expressions shall, unless repugnant to the context or meaning thereof, have the meaning hereinafter respectively ascribed to them hereunder: “Agreement” means this Agreement, and includes any amendments, annexure hereto made in accordance with the provisions hereof. “Applicable Law” means all Acts, Rules and Regulations in force and in effect as of the date hereof and which may be promulgated or brought into force and effect hereinafter in India including judgments, decrees, injunctions, writs of or orders of any court of record, as may be in force and effect during the subsistence of this Agreement applicable to the Project and the Parties hereto. “Applicable Permits” means all clearances, permits, authorizations, consents and approvals required to be obtained or maintained under Applicable Law, in connection with the “Project” during the subsistence of this Agreement. “Bid” means the documents in their entirety comprised in the bid, including all clarifications, addenda and revisions issued by AAI to the Bidders, the Proposal submitted by the successful bidder (Concessionaire) in response to the Notice in accordance with the provisions thereof. “Change in Law” means the occurrence or coming into force of any of the following after the date of signing this Agreement: (a) (b) (c) the enactment of any new Indian law the repeal, modification or re-enactment of any existing Indian law any change in the rate of any Tax

Provided that change in Law shall not include: (i) coming into effect after the date of signing this Agreement of any provision of a statute which is already in place as of the date of signing this Agreement or any new law or any change in existing law under the active consideration of or in the contemplation of any Government as of the date of signing this Agreement, which is a matter of public knowledge.

(ii)

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“Commencement Date” means the date on which access to the site to undertake the Project is allowed by AAI to the Concessionaire, in accordance with the terms of this agreement. “Completion” in relation to the Project shall mean completion of building civil works thereof (in accordance with the applicable byelaws and rules in force and approvals and sanctions received) including utilities & services such as Electricity, Water Supply, Sewerage, HVAC, Lifts & elevators, Fire fighting, and other common amenities as duly certified by the grant of Occupancy Certificate by the competent authority. “Completion Certificate” means the final Occupancy Certificate issued by the competent authority, certifying the completion of the entire construction of the Project Facility and declaring the same for occupation. “Concessionaire” means the successful bidder who is awarded the concession. “Concession Period” means the period beginning from the Commencement Date and ending on the Termination Date by efflux of time or sooner determination in accordance with the date of this Agreement. “Consideration” shall mean and includes the payments to be made by the Concessionaire to the AAI as provided in Article 3 hereafter. “Contractor” means any person, firm or company hired by the Concessionaire to execute any work relating to construction, transport, running any service or any service related thereto. “Damages” shall mean any claim of AAI against the Concessionaire for breach of this Agreement, including but not limited to, losses, dues, arrears etc. against which AAI shall be entitled to claim and adjust against the Performance Security. “Emergency” means a condition or situation that is likely to endanger the security of the individuals working for the Project or which poses an immediate threat of material damage to any of the Project Facilities. “Force Majeure” or “Force Majeure Event” means an act, event, condition or occurrence as specified in Article 9. “Government Agency” means Central or State Government or any ministry, department, commission, board, authority, instrumentality or agency, under the control of Central or State Government or any other local or municipal bodies or institutions having jurisdiction over all or any part of the Project or the performance of all or any of the services or obligations of the Concessionaire under or pursuant to this Agreement. “Independent Auditor” means the auditor appointed by AAI to independently audit and verify all matters, expenses, costs and realizations of the concessionaire, which have been carried out by the Statutory Auditors of the Concessionaire.
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Airports Authority of India

“Lead Member” means Member of the Consortium having more than 51% equity in the consortium. “Maintenance Fee” shall mean the fee charged by the Concessionaire from sublicensees and tenants for the maintenance and upkeep of the Project including all user charges. “Parties” means the parties to this Agreement and “Party” means either of them, as the context may admit or require. “Performance Security” shall mean the security to be furnished by the Concessionaire as provided in Article 3 hereafter. “Permits” shall mean and include all applicable statutory, environmental or regulatory licenses, authorization, permits, consents, approvals, registrations and franchises from concerned authorities. “Project” shall have the meaning as set out in Recital D hereinabove. “Project Facility” means the built up places and facilities, the Concessionaire is authorized to develop and license the use thereof to sub-licensees. “Site” means the property namely the Specified Area for Multi level car park with Commercial development area as shown in the site plan. “Specified Area” shall have the meaning as set out in the drawings of the Project. “Sub-contractor” means any person, firm or company hired by the Contractor to execute any work relating to construction, transport, running any service or any service related thereto. “Sub Licensee” means any person, firm or company duly authorised by the Concessionaire to use the built spaces and facilities in the Specified Area. “Tax” means and includes all taxes, fees, cesses, levies that may be payable by the Concessionaire under the Applicable Law to the Government or any of its agencies. “Termination” means termination of this Agreement by efflux of time or sooner determination in accordance with the provisions of this Agreement. “Termination Date” means the end of the concession period of 30 years from the commencement date or date of sooner determination of the concession period in accordance with the terms of this Agreement whichever is earlier.

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1.2

Measurements and Arithmetic Conventions All measurements and calculations shall be in metric system and calculations done to 2 decimal places, with the third digit of 5 or above being rounded up and below 5 being rounded down.

1.3 1.1

Priority of contract documents and errors/discrepancies The several documents forming this Agreement are to be taken as mutually explanatory to one another and, unless otherwise expressly provided elsewhere in this Agreement, the priority of the following documents shall, in the event of any conflict, discrepancy or ambiguity between them, be in the order they are set out: (i) (ii) (iii) (iv) (v) This Agreement; Schedules to this Agreement; The Letter of Award issued to the Concessionaire; The written clarifications and addenda issued to the Bidders; The Request for Proposal (RFP) document, including the Concession Agreement.

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ARTICLE 2 GRANT OF CONCESSION 2.1 2.1.1 Grant of Concession Subject to and in accordance with the terms and conditions set forth in this Agreement, and in particular subject to the due fulfilment of all the obligations assumed towards AAI by the Concessionaire, AAI hereby grants and authorizes the Concessionaire; (a) To have access to, develop, finance, construct, commission, operate, manage and maintain the Project and the Project Facility at the Specified Area during the Concession Period at the cost and risk of the Concessionaire; At the cost and risk of the Concessionaire’s license to sub-license the use of the Project Facilities during the period of this Agreement and derive incomes there from in the form of license fees, maintenance charges and other user charges.

(b)

2.1.2

The Concessionaire shall not be entitled to allow the use of the Project Facilities by any other person or for any purpose other than to develop and construct the Project Facility and to sub-license the use to sub-licensees as specified in Article 2.1.1.(b) 3 (Three) basement levels are proposed for car parking below the ground level and a part of ground floor will also be used for car park. A part of ground floor and Mezzanine floor will be developed and used for commercial purpose. The total area is 56,283 sqm (approx.), out of which 7,375 sqm. (approx.) is earmarked for commercial outlets. Display of advertisements/ hoardings will be permitted not exceeding 350 sqm. Nothing contained herein, including the act of granting permission to develop the Project Facility at the site and to license the use of the Project Facility or any part thereof shall vest or create any proprietary interest in the Project Facility or any part thereof including any permanent fixture, fitting, etc. installed in the structure of the Project Facility in favour of the Concessionaire or any Sub-Licensee or any part thereof or any other person claiming through or under the Concessionaire or sub-licensees. The Concessionaire shall not in any manner sell, transfer, assign, charge, create any lien or otherwise encumber or deal with the Project Facility in any manner except as provided under article 5.5 of the agreement and the license to sub license the use of the Project Facility as provided under Article 2.1.1(b) above. The Concessionaire acknowledges, accepts and confirms that the covenant contained herein is an essence of this agreement and shall duly bind the sublicensee to whom any license or authorization is given for the use of the Project Facility.
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2.1.3

2.1.4

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2.1.5 2.1.6

Concession Period The concession is hereby granted in favour of the Concessionaire for a total period of 30 (thirty) years including the construction period allowed from the date of commencement/handing over of the site subject, however, to sooner determination as provided in this Agreement, during which the Concessionaire is authorized to implement the Project and undertake the activities specified under sub-clauses (a) and (b) of Article 2.1.1 above. At the end of the concession period or sooner termination of this Agreement for any reason whatsoever all rights given under this concession Agreement shall cease to have effect and the Site and Project Facility with all the furniture and fixtures and other assets permanently attached to the Project Facility shall revert to AAI without any obligation to AAI to pay or adjust any consideration or other payment to the concessionaire. Restriction on licensing the use of the Project Facility or any part thereof:

2.1.7

2.1.8

2.2.3.1 The Concessionaire shall be entitled, during the subsistence of this agreement, to allow the use of the Project Facility through a sub-licensing arrangement to sublicensees subject to the terms and conditions contained in this agreement and subject to all Applicable laws. 2.2.3.2 The Concessionaire shall be entitled to sub license the use of the Project Facility, during the subsistence of this agreement only with a clear stipulation that sublicenses granted shall terminate simultaneously with the termination of this Concession Agreement including on sooner determination of the Concession Period for any reason whatsoever. All contracts, agreements or arrangements with sub-licensees shall specifically stipulate this covenant of termination of the sub-licensees rights and further that the sub licensee shall not have any claim whatsoever against AAI for any such termination. 2.2.3.3 The Concessionaire shall prepare a draft standard format of the sub license agreement or arrangement which the Concessionaire will be required to sign with the sub licensee for the use of the Project Facility. The Concessionaire shall furnish the draft of such deed to AAI for modification or suggestion. AAI shall be entitled to incorporate such clauses as AAI may consider appropriate to protect AAI’s interest. The Concessionaire shall enter into sub-license arrangements as per the Standard format with the covenants stipulated by AAI and the Concessionaire shall not incorporate or change in any clauses in the Deed that would have any adverse effect on the covenants incorporated by AAI. In case of any deviation from the above-mentioned Standard draft of the deed in any particular circumstance, which supersedes or adversely affects AAI’s terms and covenants, the prior written consent of AAI shall be taken before entering into any such agreement with a sub-licensee.
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Airports Authority of India

At any point of time, the successful bidder (Concessionaire) will not enter into any sublicence with anybody in which they give any such right to a sub-licensee, which adversely affects the interests of AAI’s or is not available to the bidder in the very first place.

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Airports Authority of India

ARTICLE 3 CONSIDERATION TO AAI 3.1 In consideration of the rights, privileges and interests granted by AAI to the Concessionaire in terms of this Agreement, the Concessionaire shall pay the following consideration to AAI in addition to the due performance of all other obligations, responsibilities and liabilities assumed by the Concessionaire under this Agreement: Monthly Licence Fee of INR________________(Indian National Rupees_________only) (to be filled as per the accepted bid) payable from the Commencement Date, which shall be escalated at the rate of 6% cumulative every year from the due date of first payment. 3.2 The Monthly Licence Fee Payments shall be adjusted on pro-rata basis if there is any variation in the areas between Annexure-7 (Site Plan) in this RFP document and actual area constructed / completed by the Concessionaire. No claim, damages or any compensation will be entertained by AAI in this regard. 3.3 The Monthly Licence Fee Payments shall also be payable on pro-rata rates (of total area) for the additional area which may be requested by concessionaire and which may be made available by AAI for utilities and services, subject to availability and feasibility. 3.4 The Monthly Licence Fee payment in Article 3.1 shall become payable from the first day after a moratorium of exactly 09 months (plus 45 days) from the date of handing over the site to the successful bidder (Concessionaire) by AAI. The 09 months (plus 45 days) period will be available to the Concessionaire for development of the property. However, it is expressly clarified that the Monthly Licence Fee payment will start at the end of 09 months (plus 45 days) from the date of handing over the site even if the developer has not been able to develop and put the property to the intended use for whatsoever reason it may be. 3.5 The Concessionaire shall make the Monthly Licence Fee payment in Clause 3.1 for each month within ten days of commencement of the respective month. 3.6 Any delay in payments of the amounts becoming due on the due dates shall constitute a wilful material default on the part of Concessionaire and the AAI shall encash the Performance Security and claim damages from the Concessionaire and be entitled to even terminate the Agreement as mentioned in Article 3.7 dealing with Performance Security. This shall be without prejudice to other rights of AAI against the Concessionaire. In addition, AAI shall be entitled to charge interest at the rate of 01 % (one percent) per month for the delay in the payment of the amounts due to AAI.

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Airports Authority of India

3.7 Performance Security Deposit 3.7.1 Performance Security Deposit of INR 25 Crores (Rupees Twenty Five Crores only) will be deposited with AAI by Demand Draft from a Nationalised / Scheduled Bank drawn in favour of Airports Authority of India payable at New Delhi. This deposit will be with AAI towards performance over the entire concession period and will be refunded to the Concessionaire without interest after the satisfactory completion of licence period. This deposit is payable before signing of the Concession Agreement. 3.7.2 The said Performance Securities shall be refunded by AAI after the expiry of the Concession Period subject to fulfilment of all handover requirements by the Concessionaire, to the satisfaction of AAI and further subject to adjustment for all damages suffered by AAI. 3.7.3 If the Concessionaire defaults in any payment for more than 60 days from the due date as per the provisions of this agreement, AAI shall be entitled to recover the outstanding amount from the Performance Security without being liable in any manner whatsoever to the Concessionaire and to appropriate the Performance Security as ‘Damages’, without prejudice to other rights and claims of the AAI. 3.7.4 Upon recovery of outstanding dues from the Performance Security, the Concessionaire shall recoup the Performance Security within 07 (seven) days. If the Concessionaire fails to submit the second Performance security within the stipulated time, AAI shall be entitled to terminate this Agreement in accordance with the provisions of Article 11, without being liable in any manner whatsoever to the Concessionaire and to forfeit the Security as ‘Damages’.

3.7.5 In case after submission of the fresh Performance Security, the Concessionaire defaults, AAI shall be entitled to terminate this Agreement in accordance with the provisions of Article 11, without being liable in any manner whatsoever to the Concessionaire and to forfeit the Performance Security as ‘Damages’

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Airports Authority of India

ARTICLE 4 PROJECT DEVELOPMENT AND OPERATIONS 4.1 Entry to the Site for work 4.1.1 AAI shall allow access to the area earmarked for the Project Facility as detailed in schedule ‘A’ to the Concessionaire for undertaking the work relating to the Project within 30 (thirty) days of signing of this Agreement. In case such access to the concessionaire gets delayed for force majeure reason or for reasons solely attributable to AAI with no contributory factor on the part of the Concessionaire, the date of Commencement of the Concession period shall be proportionately extended. AAI shall not be liable to pay any damages / costs / claims for such extensions on any account, whatsoever. 4.1.2 If during the concession period due to any reason the commercial area is enhanced, the concessionaire may utilize the additional area after obtaining written approval of AAI. In such an eventuality of additional area being permitted to the concessionaire at a later date, the concessionaire would be required to proportionately enhance the Monthly Licence Fee payments to AAI. The increase in payments shall be applicable from the date the permission for additional area is granted. 4.1.3 In the event Force Majeure reasons preventing access to the concessionaire continue for more than 180 days as envisaged in Article 4.1.1 above, either AAI or the Concessionaire shall be entitled to terminate this agreement. In such event AAI shall return Performance Security, paid by the concessionaire to AAI. There shall be no further liability or obligation of either party towards the other. 4.2 Use of the Project Site and Peaceful Possession

4.2.1 The Concessionaire, subject to complying with the Terms and conditions of this Agreement, shall have the use of the Site during the Concession Period in accordance with the terms of this Agreement and limited for the purposes mentioned in Article 2 above. The concessionaire shall not use the site or the Project Facility for any other purpose. 4.2.2 The Concessionaire shall confine its operations to the Project Site. The Concessionaire shall take all necessary precautions to keep persons and equipment within such areas, and to keep and prohibit them from encroaching, damaging or degrading or affecting adversely the Chennai Airport Premises or otherwise cause any interference to the passengers, visitors, employees, representatives and agents of the AAI. 4.2.3 The concessionaire acknowledges and accepts that the nature of the commercial development in the subject property is subservient to the provisions of the AAI Act and in the interest of airport users and accordingly such development should not be an impediment for the smooth functioning of the core operations of the AAI.

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4.2.4 The Concessionaire shall ensure at all times during the Concession period that its activities as well as those of its sub-licensees or any other person acting under or through them do not cause any inconvenience to commuters and/or disturb/disrupt in any manner or create an impediment for the smooth functioning of the operations of AAI. For this purpose, the Concessionaire is required to introduce and observe at all times, appropriate measures for safety, security and orderliness on the premises granted to the Concessionaire. 4.3 Detailed Scope of Work for Development & Construction of the Project

The Concessionaire shall, at its sole expense and risk, carry out the design, engineering, financing, procurement, management, operations and maintenance of the Project Facility at the Site in accordance with the provisions of this agreement. The key components of the project include: a) b) c) d) 4.4 Construction of Multi level car park including development of area for Commercial use Operation of Car Park and Commercial Area Maintenance of the Multi level Car Park cum Commercial Area to the satisfaction of AAI. Transfer the site to AAI after the period of concession ends. Development & Construction of the Multi level Parking Facility

The Concessionaire shall design the parking area in accordance with the structural drawings based on the conceptual drawings given by AAI. 4.5 a) Construction requirement of the Parking Facility: Parking Structure The Parking area shall be equipped with modern parking management system consisting of required gadget like sensors, video recording camera, computers, security system, signage etc. to guide commuters/ public towards the vacant parking area/ floor for its smooth operation including efficient collection system of parking charges. Parking shall be operated & maintained by the concessionaire, to the satisfaction of AAI. Parking charges levied will be charged as approved by AAI. Revenue generated thereof, though, will be retained by concessionaire. Concessionaire would be required to provide for Smart Card readers, ticket dispensers etc. to organise payment of parking charges through approved smart Card, whenever introduced.
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b)

c) d) e)

Airports Authority of India

f)

Proper maintenance along with annual maintenance & all repairs including all expenses required thereof, to keep the commuters parking in good running condition all the time to the satisfaction of AAI, will be the responsibility of the concessionaire. Construction and maintenance of Toilets in MLCP is the responsibility of the Concessionaire. The locations of toilets have been shown in the attached drawings. Change in the drawings will be permitted subject to approval of AAI. Lighting

g)

4.6

Concessionaire shall provide adequate lighting system along Walkways and Parking facility area, in accordance with applicable standards (NBC, etc). The subway and stairways, Toilets and Entry and Exit Areas for Parking shall be provided with auxiliary emergency lighting system such that in the event of failure in general power supply the auxiliary emergency lighting system is activated immediately. 4.7 Signage

The Concessionaire shall provide signage matching with that of Chennai Airport at suitable locations. The Scheme for signages shall be finalised in consultation with AAI. The signage shall be clear and visible from sufficient distance to navigate drivers without any ambiguity. The Concessionaire shall provide safety barriers at appropriate locations, to effectively manage the pedestrian and vehicular traffic. 4.8 Drainage

The Concessionaire shall design and implement a drainage facility in such a manner that there is no stagnation of water in the multi level car park complex. The internal drainage system shall be connected to the main common drain at an appropriate location in accordance with the approved drawings. 4.9 Safety Barriers

The Concessionaire shall provide, at appropriate locations, safety barriers to effectively manage pedestrian and vehicular traffic. 4.10 (i) Other Items Preparing drawings for commercial space utilisation for various components of the works and obtaining approval in respect thereof from AAI, inclusive of incorporation of all modifications, alterations, changes, etc. that may be required to be carried as directed. True and proper setting out and layout of the Works, bench marks and provision of all necessary labour, instruments and appliances in connection therewith as specified or as directed.
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(ii)

Airports Authority of India

(iii)

All temporary traffic diversion works which will be required for the smooth flow of running traffic in order to carry out the works without any interruptions including all safety precautions, signage, barricading, emergency lighting etc. Concessionaire will provide barricading along the work site. Barricades shall also be provided all around the site and will maintained till the commissioning of the operations at the site. All aspects of quality assurance, including testing of materials and other components of the work, as specified or as directed; The Concessionaire has to ensure cleanliness of the entire premises by deploying manpower for the same. The Concessionaire shall have to ensure proper brooming, cleaning and washing of the premises at all the times through the entire stretch till the currency of the contract including disposal of sewage. Nothing extra shall be payable on this account. Clearing of site and handing over of all the Works, as specified or as directed; Barricading and house keeping provisions as per AAI standards. Any other item of work as may be required to be carried out for completing the construction of Multi level parking cum commercial floor space at the site in accordance with the provisions of the Contract and/or to ensure the structural stability and safety during and after construction. Concessionaire will provide safe access passage for car park / commercial space users. Concessionaire shall provide unfettered access to the authorized representative of AAI and its operation staff for the purpose of maintenance works, if any, inside the specified area at all times during the concession period.

(iv)

(v)

(vi) (vii) (viii)

(ix)

(x)

4.11 Safety, Health & Environment - Contract conditions on Safety, Health and Environment – Provision of Safety, Health and Environment manual shall be strictly followed during the entire concession period and these documents shall be obtained by the Concessionaire from AAI. 4.12 (i) Maintenance Concessionaire is responsible for the maintenance and housekeeping of the complete area developed by him at his cost. The Project Facility developed by him will be operated & maintained by the concessionaire to the standards and to the satisfaction of AAI.

(ii)

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4.13

Interface with other Departments

The Concessionaire shall be responsible for interfacing with all the other departments at the Airport so that no inconvenience is caused to them both during the construction phase and subsequently Operation and Maintenance phase. 4.14 Associated Works Works to be performed shall also include all general works preparatory to the construction and works of any kind necessary for the due and satisfactory construction, completion and maintenance of the works to the intent and meaning of the drawings adopted and technical specifications, to the best Engineering standards and orders that may be issued by AAI from time to time, compliance by the agency with all Conditions of Contract, supply of all materials, apparatus, plants, equipment, tools, fuel, water, strutting, timbering, transport, offices, stores, workshop, staff, labour and the provision of proper and sufficient protective works, diversion, temporary fencing, lighting and watching required for the safety of the public and protection of works on adjoining land; first-aid equipment, sanitary accommodation for the staff and workmen, effecting and maintenance of all insurances, the payment of all wages, salaries, fees, royalties, duties or the other charges arising out of the erection of works and the regular clearance of rubbish, clearing up, leaving the site perfect and tidy on completion. 4.15 a) Reference to the Standard Codes of Practice All Standards, Technical Specifications and Codes of practice referred to shall be latest editions including all applicable official amendments and revisions. The Concessionaire shall make available at site all relevant Indian Standard Codes of practice and other Codes as applicable. Wherever Indian Standards do not cover some particular aspects of design/ construction, relevant International Standards will be referred to. The Concessionaire shall make available at site such standard codes of practice.

b)

4.16 Safety of Structures The construction of structures will have to be planned in such a manner that they do not obstruct or interfere with the existing roads and other utilities. Where work is required to be carried out at locations adjacent to such roads, utilities, structures, monuments etc. suitable safety and protection arrangements will have to be ensured for which nothing extra will be payable. It should be ensured that no damage is caused to any such element and Engineer/ Employer shall be indemnified against such damage at no extra cost. 4.17 Traffic Management (i) Existing roads and other public roads may be used by the Contractor at his risk and cost to carry out construction activities, with prior approval of the competent authority.
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(ii)

The Contractor’s heavy construction traffic or tracked equipment shall not travel on any public road or bridge, unless the Contractor has made arrangements with the authority concerned and has obtained the approval to such arrangements. The Concessionaire shall make the detailed traffic diversion plans in consultation with Chennai Traffic Police. The detailed traffic diversion schemes justifying the traffic volume details and capacity of roads shall be submitted to AAI within 15 days of issue of letter of acceptance. The work is to be executed with proper liaisoning with Chennai Traffic Police. Necessary assistance will be given by AAI. The scheme should be such that minimum of two lane of traffic on each direction of the road should be available for the smooth flow of traffic. The Concessionaire should inspect the site. The Concessionaire shall also strengthen the road where the diversions are planned by widening, repairing to the road surface etc. Traffic barricade with blinker, reflective tapes and other necessary traffic signages should be provided wherever required. Temporary traffic diversion for smooth flow of traffic will be provided during construction including necessary traffic signs, repairs to diverted route/services lanes if required. Traffic marshals shall be deployed for the period of diversion to guide the road users and to avoid traffic congestion. Restoration of diverted route in original condition etc. shall be done by Concessionaire. The Concessionaire shall repair any damage to the road or bear the cost thereof due to movement of contractor’s plants and equipment, vehicles etc. to the specifications and satisfaction of road authorities as well as of AAI. The Contractor shall plan transportation of construction materials to work site in accordance with traffic regulations enforced by local traffic authorities from time to time and in such a way that road accidents are avoided. The transportation of certain equipments and materials and launching may not be possible during day and may have to be carried out within time schedule specified by traffic police. Programme of Works The Concessionaire shall prepare and submit his detailed Programme of Work separately so as to achieve key dates of various activities on time. The Concessionaire shall complete the work in a phased manner fixing priorities to the different stretches of the work to give access to other interfacing contracts as per the requirement of project from time to time. The construction sequence has to be planned in such a way that the construction work is completed within stipulated 09 months (plus 45 days) from the handing over of site. The detailed plans of construction, with bar charts, shall be submitted before commencement of construction.

(iii)

(iv)

(v)

(vi)

4.18

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4.19 (i)

Obligations : Construction, Completion & Operationalization Even if the Concessionaire does not complete the construction of multi-level car park and commercial development within stipulated 09 months (plus 45 days) period after the date of handing over of site, he shall have to commence payment of monthly license fee effective 09 months (plus 45 days) from the date of handing over of site This shall not relieve the Concessionaire from his obligation to complete the Works or from any other of his obligations and liabilities under the Contract. The Concessionaire shall co-ordinate his programme to the extent feasible with the programmes of other contractors to be engaged at the Site or in the vicinity of the Site as furnished by AAI so that the project can be completed in time as per the overall programme. CODES AND STANDARDS

(ii)

(iii)

4.20

The Concessionaire shall carry out the design and construction of the Project Facility in strict compliance with all applicable laws, in particular, applicable Building Codes and Standards and good industry practice. 4.20.1 Entry and Exit Areas of the Parking Facility (i) Location: Location of the Entry and Exit Areas and of the driveways along with their connection to the road system will be made properly. Size: The Entry and Exit Areas must be sized to allow drivers to safely and comfortably drive in and out the vehicle. Turning radii and width of drive aisles and minimum clear width of Entry and Exit Area shall be designed according to the respective needs and leaving adequate space to the left and right of the car for passengers to leave / enter the car and in accordance with Applicable Codes. Components: Sensor motion detectors and CCTV cameras or similar devices shall be installed inside the Entry/ Exit & parking areas for providing state of the art & modern parking management system. Recesses in the floor area shall be minimized to the need of guiding the drivers in the “drive-in” process. All other areas shall be flat for pedestrian traffic. Gaps between moving parts and platforms need to be limited as per Applicable codes. All Entry and Exit Areas must comply with disability requirements. The driveways for inbound and outbound traffic shall be designed to provide sufficient queuing spaces; simple visual signage and guidance shall clearly direct approaching traffic into the Entry and Exit Areas.
Concession Agreement-MLCP, Chennai 20

(ii)

(iii)

(iv)

(v) (vi)

Airports Authority of India

4.20.2 Fire Safety Fire safety measures as recommended in applicable codes shall be implemented. 4.20.3 Ventilation / Air Conditioning (i) Areas accessible to the public / drivers shall be equipped with sufficient air conditioning /ventilation.

4.20.4 Lighting / Accessibility for Maintenance (i) 4.21 Lighting in areas accessible to the drivers / public shall be properly illuminated. DEVELOPMENT OF THE COMMERCIAL SPACE The nature of the activities and facilities that can be allowed in the commercial space developed at the proposed site include: o Snack Bar/ Restaurant o Retail shops for passengers and tourists o ATMs o Vending Kiosks o Money Exchange Counters o Car washing using modern technology o Any other amenities which are permitted under AAI Act with prior approval of AAI. 4.22 REQUIREMENTS FOR COMMERCIAL DEVELOPMENT

The Concessionaire would be at liberty to design the commercial development, subject to approval by AAI/ other authorised agencies and as per Applicable By-Law. 4.23 PROCEDURE

4.23.1 Before Commencement of Construction (i) Prior to commencement of construction of any of the Project Facilities, the Concessionaire shall obtain all applicable permits from AAI & concerned local authorities, necessary to commence construction of such Project Facilities. Before applying to any other competent authority for sanction of the scheme the Concessionaire is required to first obtain AAI’s written approval on his proposed drawings and specifications to ensure that the proposed developments do not conflict with the AAI’s activities and functional requirements, structural aspects, utilities and all traffic movement requirements. It is agreed that AAI shall not unreasonably interfere with the internal layout of the complex proposed by the Concessionaire. AAI shall convey its decision after scrutinising the submission. If AAI is not satisfied and raises any
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Airports Authority of India

objections, the Concessionaire shall be required to appropriately amend/modify his scheme / plans within a reasonable time frame and seek AAI’s approval once again. (ii) Concessionaire will have to formulate & plan the car park cum commercial complex in accordance with the provisions of Master Plan of Chennai (MPC) and the applicable byelaws of civic authorities including regulations of the statutory/ regulatory authorities like City Fire Services, etc.. AAI will not be responsible for anything in this regard. Its role will be limited to extending assistance to the concessionaire in his efforts to obtain clearances required from Chief Fire Officer. 4.23.2 During Construction a. (i) The Concessionaire shall: Strictly follow the guidelines on quality as set out in applicable codes in addition to specific guidelines prescribed in this agreement. Ensure that the construction of the Project Facilities is undertaken with minimal inconvenience to the traffic using the roads surrounding the Project Site. Take the necessary precautions to minimize accidents and respond to Emergency as quickly as possible; Take precautions to avoid inconvenience to, damage to, destructions of or disturbance to any third party rights and properties; Provide a safe, clear and informative system of road signs in connection with the project, wherever required; Ensure adequate safety of the personnel deployed at the project site, which would include measures for the safety such as the provision and maintenance of barricades, traffic signs and illumination during night in consultation with the AAI. Be in compliance with the Applicable Laws and Applicable Permits obtained for the project including the clearances obtained by the Government Agency. Deploy adequate number of qualified and competent personnel having relevant experience and skills for implementation of the Project and interaction with the AAI. The Concessionaire shall be responsible for the accurate setting-out of the Project Site; the correctness of the positions, levels, dimensions and alignment of all part of the works;
Concession Agreement-MLCP, Chennai 22

(ii)

(iii)

(iv)

(v)

(vi)

(vii)

(viii)

b. (i) (ii)

Airports Authority of India

(iii)

Shifting of Utilities/ Other Services

The Concessionaire will be responsible for shifting of various utilities/ services, if passing through the site and if shifting of the same is required for taking up the development of parking cum commercial complex by the developer, it will be done by the concessionaire on its own cost. AAI will not pay anything on this account. AAI shall however assist in the required liaisoning with the agencies concerned. AAI shall be informed in advance before resorting to any such activity. c. (i) Site Safety and Security Measures Within 30 days from the date of this Agreement the Concessionaire shall provide to AAI details of its safety plan and procedures for the Works. The Concessionaire shall comply with all safety regulations applicable, in its design, access arrangements and operations on Project Site. Unless otherwise stated in this Concession Agreement, the Concessionaire shall, from the commencement of work on the Project Site until the expiration of this Concession Agreement, provide fencing, lighting, guarding and watching of the works and facilities. The Concessionaire shall be responsible for the operation of machinery and any other work and shall take all precautions to ensure safety of the staff, labourers and public. The Concessionaire shall be responsible at its cost, for procurement, transportation, unloading and safe keeping of all plant and machinery, equipment, materials and other things required for the construction and operation and maintenance of the facilities. Unless otherwise stated in this Concession Agreement: The Concessionaire shall be responsible for keeping unauthorised persons off the Project Site, during the construction period Authorised persons during the construction phase shall be limited to the employees of the Concessionaire, employees of Subcontractors of the Concessionaire, and employees and persons authorised by AAI.

(ii)

(iii)

d.

The Concessionaire shall arrange for all the material requirements for the Project and disposal of all material wastes. The Applicable permits in this regard would have to be obtained by the Concessionaire. All excess and unsuitable excavated materials shall be piled at appropriate dumping places or otherwise disposed of by the concessionaire in consultation with the AAI.

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Airports Authority of India

4.23.3 After Completion of Construction a. Upon completion of construction, the project site shall be cleared of all construction equipment, surplus materials, debris and temporary installations and shall be left in tidy and an aesthetically pleasing appearance to the satisfaction of the AAI. The Concessionaire shall carry out the design and construction of the Project Facility in strict compliance with all applicable laws in particular, applicable Building Codes and Standards and good industry practice. Subject to terms of this Agreement, the Concessionaire shall be free to design the layout plan within the commercial space. The Plan will, however, be got approved from AAI before execution. Provided that: (a) the Concessionaire, the sub-licensees and their representatives, agents and other persons undertaking works shall duly adhere to the provisions of all Applicable Laws including and in particular the prevalent Chennai Building Bye-Laws and specified guidelines /requirements of other competent authorities. (b) the facilities and works being undertaken or installed shall not in any manner affect, hinder or interfere with the free movement of the passengers and visitors. (c) the width of passages and common areas for movement of persons in the Project Facility shall be kept as per prevalent Chennai Building Bye-Laws. (d) no material is stored or kept outside the site or in the common area meant for movement of persons; and (e) no surplus construction machinery and materials, including hazardous materials and wastes shall be left at any place in the Site. Save as on account of Force Majeure reasons or reasons solely attributable to AAI with no contributory factor of the Concessionaire, the Concessionaire shall have to complete in all respects the development of the project and project facilities not later than 09 months (plus 45 days) of the Commencement Date and AAI may thereafter be entitled to restrict the construction on the site. The Concession period shall be restricted to thirty (30) years from the Commencement Date notwithstanding the time allowed for completion under this clause. For delays on account of Force Majeure reasons or reasons attributable solely to AAI with no contributory factor of the Concessionaire, Concession Period shall be extended accordingly by the ‘period of delay’, but no financial claims shall be entertained by AAI on this account. Power supply: - will be made available at one point to the developer on commercial rates by AAI. The developer shall arrange for required power back up on its own and shall solely be responsible for all aspects related to it. AAI shall not be responsible in any manner whatsoever to either the Concessionaire or his contractors or agents and sub-licensees for any default or failure by the Concessionaire to comply with statutory requirements, design and construction as per the Applicable Laws in
Concession Agreement-MLCP, Chennai 24

b.

c.

d.

e.

f.

Airports Authority of India

particular Building Codes and Good Industry Practice, observance of safety and security measures at site etc. AAI shall not bear any costs associated with it. g. AAI will supply electric power to the Concessionaire at one point. The power cable, etc. beyond this supply point will be laid by the Concessionaire on his own and at his cost. The tariff and all terms and conditions will be as per commercial tariff regulations, applicable from time to time. The concessionaire shall also charge tariff from his customers at approved rates. The Concessionaire shall make its own fire-fighting arrangements. Such firefighting arrangements shall conform to the IS Code of Practice / Chennai Fire Services norms. The Concessionaire shall be solely responsible and liable for development and implementation of the Project Facility. AAI shall not be responsible in any manner, whatsoever, to either the Concessionaire or its contractors or agents and sub- licensees for any default or failure by the Concessionaire to comply with statutory requirements, design and construction as per the Applicable Laws in particular Building Codes and Good Industry Practice, observance of safety and security measures at site, etc. AAI shall not bear any costs associated with it. It is the Concessionaire’s sole responsibility to provide all necessary requirements to be installed at the Project Facility for obtaining all necessary clearances and sanctions from Chief Fire Officer. AAI shall only provide assistance wherever possible, on best effort basis (without any legal and binding obligation) to facilitate the process of obtaining CFO’s clearance. OPERATIONS & MAINTENANCE OF THE PROJECT FACILITY

h.

i.

j.

4.24

4.24.1 PARKING FACILITIES Concessionaire shall be responsible to (i) prevent unauthorised, random, haphazard parking of any vehicle in the project area and deal with vehicles violating the regulations in appropriate manner as advised by AAI. ensure free, organised and quick movement of all vehicles entering, exiting and within the parking area, and prevent undue queuing of vehicles. ensure that the parking and circulation areas are well maintained through regular repair of the pavement, walls and other structures, painting of walls, columns, ceilings, metal structures, and markings for individual parking slots/bays at all times.

(ii)

(iii)

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Airports Authority of India

(iv)

ensure that the entire parking area is maintained clean and free of litter, dust, waste materials, debris, obscene materials etc. at all times through regular sweeping, washing & cleaning at all times. maintain the parking management system – gadget, etc. in good working condition. ensure adequate lighting in the parking area and signages for directions. ensure proper, round-the-clock safety and security of people and vehicles at all the parking lots through manual staff, CCTV, etc.

(v)

(vi) (vii)

(viii) collect charges for parking from the users by issuing proper receipts and maintain computerised records of collection. Parking charges will be as determined and allowed by AAI (ix) ensure that the parking staff deal with all people who come for parking their vehicles in a courteous, polite manner and prevent undue harassment to public.

4.24.2 Commercial Area (i) To ensure that floor, walls and ceilings in corridors and common areas are kept clean, litter free, stain free at all times. Exteriors and interiors of the building, especially structural elements, shall be inspected, repaired and painted on regular basis. Repair of damaged civil structure, cladding material/finishes, doors & windows, furniture and fixtures, plumbing, sanitary, electrical and HVAC works etc. for common areas in the interior (like passages, toilets, lobbies, ramps, lifts and staircase, etc.) as well as exterior shall be carried out promptly. Log of all inspection, repair and maintenance work shall be maintained and available for inspection by AAI. External surface of glazing of all buildings including commercial establishments & parking shall be cleaned on a regular basis and log of this shall be maintained. To prevent encroachment of corridors and common areas and ensure free passage for movement of people, goods at all times. To ensure adequate lighting of the corridors and common areas such as lobbies, terraces etc. To ensure free, organised and quick movement of all vehicles entering, exiting and within the parking area, prevent undue queuing of vehicles

(ii)

(iii)

(iv)

(v)

(vi)

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Airports Authority of India

4.24.3 SECURITY SYSTEM & ACCESS CONTROL (i) To ensure overall safety and security of people and vehicles in the entire project area round the clock. To prevent encroachment and hawkers in the entire project area.

(ii)

4.24.4 WATER SUPPLY AAI shall make available water supply at one point beyond which the Concessionaire will have to take the supply by putting water pipe lines, etc. at his cost. The tariff fixed by AAI for water supply will be payable by Concessionaire. The water meter provision will be responsibility of the Concessionaire. 4.24.5 STORM WATER DRAINAGE & SEWAGE DISPOSAL (i) All chambers, manholes, catch basins etc. and lines should be clear at all times through regular cleaning and de-silting and choking, if any, shall be attended to promptly. All gratings and covers should be in place at all times and losses, if any shall be replaced promptly. All pumps, panels and controls for evacuation of storm water and sewage shall be maintained in proper working order at all times.

(ii)

(iii)

4.24.6 SOILD WASTE MANAGEMENT All public spaces, common areas, circulation areas, etc. shall be swept and maintained clean and free of litter, dust, waste, debris, etc. on a continuous basis. 4.24.7 The Concessionaire shall be solely responsible and liable, at his own cost, for all maintenance, upkeep and repairs of the Project Facilities and all its components, including buildings, access ways, pavements, green areas, utilities and services and allied works as per best industry practices and Applicable Laws and Applicable Permits. The Concessionaire shall also carry out rectification of defects in the design or construction of any component of the works at its own cost. 4.24.8 AAI shall not be liable to any sub-licensee or end-user or visitors for any laxity or default by the Concessionaire in proper upkeep and maintenance of the Project Facility or any of its components. 4.24.9 The Concessionaire shall carry out all checks and maintenance or repair works with adequate advance notice in such a planned manner that there shall be minimal disruption of the operations of the airport.

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Airports Authority of India

4.24.10 AAI may inspect the Project Facility at any time for its own assessment of the compliance by the Concessionaire with its maintenance obligations under this Agreement. The Concessionaire shall extend all reasonable assistance to the AAI representatives during such inspection visits. 4.24.11 The Concessionaire shall at its cost, carry out its own periodic inspections, and also assist AAI or its nominee (whenever requested) to carry out any random or periodic inspection of any part or component of the works. The cost of any test, if required, shall be borne by the Concessionaire. 4.25 Co-ordination

The Concessionaire shall, upon request by AAI, co-operate the co-ordination of the works with the work of any other persons to whose systems the facilities are to be connected, provided that such co-operation shall not empower the concessionaire to unreasonably interfere with the carrying out of the works. The Concessionaire shall afford all reasonable opportunities for carrying out their work to: i) ii) iii) the workmen of AAI; any other persons employed by the AAI and their workmen; and the workmen of any public authority who may be employed in the execution on or near the site of any work not included in this Concession Agreement, which AAI may require.

4.26 Penalty Clause If any infringement as defined under clauses mentioned above occurs, AAI will issue a notice to rectify the infringement within 30 days. If the infringement is not rectified inspite of opportunity given above, AAI may at its discretion rectify the same and charge the cost from the developer.

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Airports Authority of India

ARTICLE 5 RIGHTS AND OBLIGATIONS 5.1 The Concessionaire’s Responsibilities and Duties shall include the following, in addition to and without prejudice to other obligations under this Agreement: to obtain due Permits, necessary approvals, clearances and sanctions from the competent authorities for building plans, infrastructure facilities including power, water supply, drainage & sewerage, fire fighting, telecommunication, etc.; to comply and observe at all times with all Applicable Permits, approvals and Applicable Laws in the performance of its obligations under this Agreement including those being performed by any of its Contractors; to furnish AAI with the “As built” Drawings of the Project after completion of construction of the complex ; to operate and maintain the Project Facility at all times in conformity with this Agreement; to be responsible for safety, soundness and durability of the Project including other structures forming part thereof and their compliance with the local building byelaws; to ensure that no structural damage is caused to the existing buildings and other permanent structures at the airport as a result of his activities or any of its agents, contractors, tenants, etc.; to ensure at all times that the said development in the Multi level parking with commercial development is neither an impediment for smooth flow of traffic nor a cause of inconvenience and safety hazard for the airport structure and for commuters; to take all reasonable steps to protect the environment (both on and off the Project Site) and to limit damage and nuisance to people and property resulting from construction and operations, within guidelines specified as per Applicable Laws and Applicable Permits; to pay at its own cost all applicable existing and future taxes/charges/fees / property tax, stamp duty, registration charges and any other related Legal Documentation charges, if any, in respect of the said Project Facility; to duly supervise, monitor and control the activities of Contractors under their respective Project Agreements as may be necessary;
Concession Agreement-MLCP, Chennai 29

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)

Airports Authority of India

(k)

to make reasonable efforts to maintain harmony and good industrial relations among the personnel employed in connection with the performance of the Concessionaire’s obligations under this Agreement; to obtain and maintain in force all insurance in accordance with the provisions of this Agreement and Good Industry Practice and furnish copies of the same to AAI; to take all reasonable precautions for the prevention of accidents on or about the Project Facility and provide all reasonable assistance and emergency medical aid to accident victims; not to permit any Contractor or other person, claiming through or under the Concessionaire, to create or place any encumbrance or security interest over all or any part of Site or the Project Assets, or on any rights of the Concessionaire therein or under this Agreement, save and except as expressly permitted in this Agreement; to ensure that such Site remains free from all encroachments, encumbrances and trespass during the entire Concession Period; during execution of Works, to keep the Project Site free from all unnecessary obstruction, and store the Equipment or surplus materials dispose of such equipment or surplus materials in a manner that causes least inconvenience to the airport users or otherwise to AAI’s activities. within 30 (thirty) days of achieving ‘Completion’ of the said development in the Site, to remove from the ‘Site’ all surplus construction machinery and materials, including, without limitation, hazardous materials and wastes, and keep the ‘Site’ in a neat and clean condition, and in conformity with the Applicable Laws; except that the Concessionaire shall be entitled to retain on any Project Site, until the expiry of the concession period, such equipment, materials and temporary works as required by it for the purpose of fulfilling its obligations under this Concession Agreement in respect of operation and maintenance of the Project. on expiry of Concession Period, within a maximum period of 30 days, to leave the entire complex in a clean and safe condition to the satisfaction of AAI. Provided that if the Concessionaire fails to clear, the Project Facilities and Site, AAI may invoke the Performance Security, and get the complex cleaned at the cost of Concessionaire. to provide all assistance to the independent consultant / expert / independent auditor / arbitrator as it may require for the performance of its duties and services; at all times, to afford access to the Site to the authorised representatives of AAI, other persons duly authorised by any Governmental Agency having jurisdiction
Concession Agreement-MLCP, Chennai 30

(l)

(m)

(n)

(o)

(p)

(q)

(r)

(s)

(t)

Airports Authority of India

over the Project, to inspect the Project and to investigate any matter within their authority and upon reasonable notice; and (u) to comply with the divestment requirements and hand over the Project Facility to AAI upon Termination of the Agreement;

5.2 The Concessionaire shall be solely and primarily responsible to AAI for observance all the provisions of this Concession Agreement on behalf of the Concessionaire, its employees and representatives and further on behalf of the sublicensees, their employees and agents and any person acting under or for and on behalf of the Concessionaire or the sub-licensees; the sub contract or as fully as if they were the acts or defaults of the Concessionaire, its agents or employees. 5.3 The Concessionaire shall be liable for and shall indemnify, protect, defend and hold harmless AAI, AAI’s officers, employees and agents from and against any and all demands, claims, suits and causes of action and any and all liability, costs, expenses, settlements and judgements arising out of the failure of the Concessionaire to discharge its obligations under this clause and to comply with the provisions of Applicable laws and Applicable Permits. 5.4 The Concessionaire shall acknowledge and recognise that time is of the essence of this Agreement and that the performance of its obligations shall be construed accordingly. 5.5 Assignability and Encumbrance

5.5.1 Except for the sub-licensing the use of the built space, facility as per the terms of this Agreement, the Concessionaire shall not assign any of its rights, or interest in this Agreement in favour of any person(s) at any time and for any reasons whatsoever. 5.5.2 The Concessionaire may subject to the first and paramount charge of the AAI over the receivables from the sub-licensees and other users of the built up space and facilities, for the payment of the amounts becoming due to AAI, create second or further charge over the receivables as security to recognised Financial Institution(s) / Banks for financial assistance and funding of the Project 5.5.3 The building or facilities constructed or installed at the Project or Site can be mortgaged, charged or otherwise any lien (including negative lien), charge or encumbrance be created or agreed to be created for a maximum period of 15 (fifteen) years or till termination of the concession agreement whichever is earlier in favour of any person including Lenders/Financial Institution(s)/Banks etc. only with prior approval of AAI. However under no circumstances shall the land be mortgaged, charged or otherwise any lien(including negative lien), charge or encumbrance be created or agreed to be created in favour of any person, including Lenders / Financial Institution(s) / Banks,

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Airports Authority of India

5.6

Treasures/Fossils

In the event of discovery by the Concessionaire or his employees during the progress of the work of any treasure, fossils, minerals or any articles of value or interest, the Concessionaire shall give immediate intimation of such treasure or things to the AAI and the same shall become the property of the Government/ AAI. The concessionaire shall not claim any right, title or interest on such things at any time.

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Airports Authority of India

ARTICLE 6 RESTRICTION ON CHANGES IN CONCESSIONAIRE AND SPECIAL PURPOSE COMPANY 6.1 There shall be no change in the Concessionaire’s shareholding structure that was submitted to AAI at the time of bidding, till the Completion of the Project. If there are changes in the structure before completion, the Concessionaire must take prior approval of AAI. 6.2 Without in any manner affecting the obligations of the Concessionaire to AAI, the Concessionaire, if comprises of a Consortium, may establish a Special Purpose Company to implement the Project. The Consortium members of the Concessionaire shall continue to be responsible and liable for due performance of all the obligations and responsibilities assumed by them under this Agreement. 6.3 The Members of the ‘Consortium’ having majority stake shall together maintain a minimum equity stake of 51% of the aggregate shareholding of the Special Purpose Company at all times. Any deviation from the above shareholding structure shall expressly be with the prior consent of AAI. Further, any change in the equity shareholding pattern of the Special Purpose Company during the concession period resulting in change in management control shall be notified to AAI and prior permission taken. All members of the Consortium shall be liable jointly and severally, for the execution of the Project in accordance with the terms of this Concession Agreement.

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Airports Authority of India

ARTICLE 7 INSURANCE 7.1 The Concessionaire shall, at its cost and expense, purchase and maintain during the concession period insurance to cover against: (a) (b) (c) (d) (e) Loss, damage or destruction of the Project Facility, at replacement value; The Concessionaire’s general liability arising out of his agreement; Liability to third parties; The risks that may devolve on AAI as a consequence of any act of negligence or omission by the Concessionaire; and Any other insurance that may be necessary under and in accordance with the Financing Documents, Applicable Laws to protect the Concessionaire and its employees, including all Force Majeure Events that are insurable and not otherwise covered in items above.

7.2 For the sake of brevity, the aggregate of the maximum sums insured under the insurance taken out by the Concessionaire pursuant to this Article 7 are herein referred to as the “Insurance Cover”. 7.3 Evidence of Insurance Cover: The Concessionaire shall, from time to time, provide to AAI copies of all insurance policies (or appropriate endorsements, certifications or other satisfactory evidence of insurance including copies of all premium payment receipts, renewals) obtained by him in accordance with this Agreement. 7.4 Such insurance shall not be cancelled, changed or terminated until the expiration of at least 45 (forty five) days after written notice of such cancellation, change or termination has been given to AAI in writing. 7.5 If at any point of time the Concessionaire fails to maintain in force and effect any/ all of the insurances required under this Agreement, AAI may, at its option, purchase and maintain such insurance and all sums incurred by AAI therefore shall be reimbursed by the Concessionaire forthwith on demand, failing which the same shall be recovered by the AAI by exercising right of set off or otherwise.

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Airports Authority of India

ARTICLE 8 ACCOUNTS AND AUDIT 8.1 The Concessionaire shall appoint and have during the subsistence of this Agreement as its ‘Statutory Auditors’ a firm of Chartered Accountants duly licensed to practice in India. The fees and expenses of the Statutory Auditors shall be borne by the Concessionaire. 8.2 The Concessionaire shall maintain full accounts of all inflows collected by it from the Project and of O&M Expenses and other costs. 8.3 Notwithstanding anything to the contrary contained in this Agreement, AAI shall have the right, but not the obligation, to appoint at its cost, another firm of chartered accountants to independently audit (“Independent Auditor”) and verify all matters, expenses, costs, realizations which have been carried out by the Statutory Auditors of the Concessionaire. In such an event, the concessionaire shall provide to such Independent Auditor access to all documents and records. 8.4 In the event of their being any difference between the finding of the Independent Auditor, as the case may be, and the certification provided by the Statutory Auditors of the Concessionaire, such Auditors shall meet to resolve such differences and if they are unable to resolve the same such disputed certification shall be resolved by recourse to the Dispute Resolution Procedure.

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Airports Authority of India

ARTICLE 9 INDEMNITY 9.1 The Concessionaire hereby undertakes to indemnify and hold AAI harmless against all costs, damages, liabilities, expenses arising out of any third party claims relating to non-completion of Project; quality of the Project and the Construction / construction activities, entered into between the Concessionaire and Sub-Licensee. 9.2 The Concessionaire hereby undertakes to indemnify AAI against all losses and claims in respect of death or injury to any person or loss or damage to any property which may arise out of or in consequence of the execution and completion of works and remedying defects therein, and against all claims, proceedings, damages, costs, charges and expenses whatsoever in respect thereof or in relation thereto. 9.3 The Concessionaire hereby undertakes that AAI shall not be liable for or in respect of any damages or compensation payable to any workman or other person in the employment of the Concessionaire or any of his contractors/sub contractors. The Concessionaire shall indemnify and keep indemnified AAI against all such damages and compensation; all claims proceedings, damages, costs, charges, and expenses whatsoever in respect thereof or in relation thereto.

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Airports Authority of India

ARTICLE 10 FORCE MAJEURE 10.1 Force Majeure Event

Any of the following events resulting in material adverse effect shall constitute a Force Majeure Event: a. b. c. d. e. f. g. 10.2 Earthquake, flood, inundation, landslide; Storm, tempest, hurricane, cyclone, lightning, thunder or other extreme atmospheric disturbances; Fire caused by reasons not attributable to the Concessionaire; Acts of terrorism; and War, hostilities (whether war be declared or not), invasion, act of foreign enemy, rebellion, riots, weapon conflict or military action or civil war; Strikes or boycotts, other than those involving the concessionaire, its contractors , sub-contractors or their employees, agents, etc.; and Any other similar things beyond the control of the Party. Notice of Force Majeure Event

As soon as practicable and in any case within 3 days of the date of occurrence of a Force Majeure Event or the date of knowledge thereof, the Party which is rendered wholly or partially unable to perform any of its obligations under this Agreement because of a Force Majeure Event (“the Affected Party”) shall notify the other party of the same, setting out, inter alia, the following in reasonable detail: a. b. c. d. The nature and extent of the Force Majeure Event; The estimated Force Majeure Period; The nature of and the extent to which, performance of any of its obligations under this Agreement is affected by the Force Majeure Event ; The measures which the Affected Party has taken or proposes to take to alleviate/mitigate the impact of the Force Majeure Event and to resume performance of such of its obligations affected thereby ; and Any other relevant information concerning the Force Majeure Event, and /or the rights and obligations of the Parties under this Agreement. Performance of Obligations

e.

10.3

The Affected Party shall be excused from performance of such obligations to the extent it is unable to perform the same on account of such Force Majeure Event provided that: a. b. Due notice of the Force Majeure Event has been given to the other party as required by the preceding Article 10.2; The excuse from performance shall be of no greater scope and of no longer duration than is necessitated by the Force Majeure Event;
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Airports Authority of India

c. d.

e.

f.

g.

h.

There shall be no Termination of this Agreement except as provided in Article 10.4; Where the Concessionaire is the Affected Party, the various deadlines set forth in this agreement and the Concession Period shall be extended by the period for which such Force Majeure Event shall subsist. Where the Concessionaire is the Affected Party, it has taken all reasonable efforts to avoid, prevent, mitigate and limit damage, if any, caused or is likely to be caused to the Project Facilities as a result of the Force Majeure Event and to restore the Project Facilities, in accordance with the Good Industry Practice and its relative obligations under this Agreement; When the Affected Party is able to resume performance of its obligations under this Agreement, it shall give to the other Party written notice to that effect and shall promptly resume performance of its obligations hereunder, the non issue of such notice being no excuse for any delay for resuming such performance; The Affected Party shall continue to perform such of its obligations which are not affected by the Force Majeure Event and which are capable of being performed in accordance with this Agreement; and Any insurance proceeds received by The Concessionaire shall be entirely applied to repair, replace or restore the assets damaged on account of the Force Majeure Event, in accordance with Good Industry Practice, unless otherwise agreed to by AAI. Termination due to a Force Majeure event

10.4

If a Force Majeure Event subsists for a period of 180 (one hundred eighty) days or more within a continuous period of 365 (three hundred sixty five) days, either Party may in its sole discretion terminate this Agreement by giving 30 (thirty) days Termination Notice in writing to the other Party without being liable in any manner whatsoever.

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Airports Authority of India

ARTICLE 11 TERM AND TERMINATION 11. Term 11.1 It is the intention of the parties that this Agreement shall continue to operate and be binding on the Parties for the concession Period of 30 years from the Commencement Date, unless terminated earlier in accordance with the provisions of this Article 11. 11.2 Termination by AAI

AAI may terminate this Agreement due to any of the following events of default by the Concessionaire (hereinafter called the “Concessionaire Event of Default”): a. The Concessionaire has failed to perform or discharge any of its obligations in accordance with the provisions of this Agreement, unless such event has occurred because a Force Majeure Event, or due to reasons solely attributable to AAI without any contributory factor of the Concessionaire; If at any time any payment, assessment, charge, lien, penalty or Damage herein specified to be paid by the Concessionaire to AAI, or any part thereof, shall be in arrears and unpaid; Any representation made or warranties given by the Concessionaire under this Agreement is found to be false or misleading; The Concessionaire engaging or knowingly has allowed any of its employees, agents, sub-licensees, contractor or representative to engage in any activity prohibited by law or which constitutes a breach of or an offence under any law, in the course of any activity undertaken pursuant to this Agreement; The Concessionaire has not started/completed construction of the Project Facility, in accordance with the time specified in Article 4; The Concessionaire has been adjudged as bankrupt or become insolvent. The Concessionaire has created any encumbrance, charges or lien in favour of any person or agency, over the Project Facility or the Site, save and except as otherwise expressly permitted under this Agreement ; A resolution for voluntary winding up has been passed by the shareholders of the Concessionaire; Any petition for winding up of the Concessionaire has been admitted and liquidator or provisional liquidator has been appointed or the Concessionaire has been ordered to be wound up by Court of competent jurisdiction, except for the purpose of amalgamation or reconstruction with the prior consent of AAI, provided that, as part of such amalgamation or reconstruction and the amalgamated or reconstructed entity has unconditionally assumed all surviving obligations of the Concessionaire under this Agreement; The Concessionaire has abandoned the Project Facility. Provided that in the event of application of sub-clauses (a) and (b) above AAI shall give to the Concessionaire 30 days time to cure the default prior to considering the events specified therein as Concessionaire’s events of default and in the event the
Concession Agreement-MLCP, Chennai 39

b.

c. d.

e. f. g.

h. i.

j.

Airports Authority of India

Concessionaire remedies the default to the satisfaction of the AAI within the said 30 days period, the event will not be considered as a Concessionaire Event of Default. 11.3 Termination for Force Majeure

The Agreement may be terminated for Force Majeure reasons as specified in Article 10.4. 11.4 Consequences of Termination

11.4.1 Without prejudice to any other consequences or requirements under this Agreement or under any law, the following consequences shall follow upon expiry of the Concession Period by efflux of time or due to a Force Majeure Event or the Concessionaire Event of Default. 11.4.2 At the end of concession period, the Project site & the entire facility thereof shall transfer back to AAI at nil value. AAI at its own discretion may allow the sub-licensees / tenants / end users to continue on mutually negotiable terms & conditions. 11.4.3 Transfer of Assets: On the termination, the Concessionaire shall subject to the provisions of this Agreement: (a) (b) Hand over/surrender vacant and peaceful possession of the entire Project Facility, free from all encumbrances, to AAI free of cost; Transfer all its rights, titles and interest in or over the assets comprised in the Project which are required to be transferred to AAI in accordance with this Agreement and execute such deeds and documents as may be necessary for the purpose and complete all legal or other formalities required in this regard ; All Project Assets shall have been renewed and cured of all defects and deficiencies as necessary so that the Project is in accordance with the specifications & standards mutually decided upon; Hand over to AAI all documents including -built drawings, manuals and records relating to construction, operation and maintenance of the Project and a certificate from his statutory auditors stating zero financial encumbrance on the Project ; At its cost remove from the Site all such moveable assets, which are not taken over by or transferred to the AAI. It is hereby agreed between the parties that the Concessionaire or the sub-licensee or any other person acting through or under them shall not remove any of the Project Facilities at Site including all equipment and other fixtures attached to the Project Facilities and shall remove only movables which can be removed without causing any damage to the structure. 11.4.4 Contracts: The Concessionaire shall transfer/assign such Project Contracts, which are (i) valid and subsisting, and (ii) capable of being transferred to AAI. The Concessionaire shall entirely at its cost, terminate all such Project Contracts which are not transferred/assigned to the AAI.
Concession Agreement-MLCP, Chennai 40

(c)

(d)

(e)

Airports Authority of India

11.4.5 Applicable Permits: The Concessionaire shall, at its cost, transfer to AAI all such Applicable Permits, which the AAI may require and which can be legally transferred. 11.4.6 Both parties shall at least 6 (six) months prior to the expiry of the normal Concession Period of 30(thirty) years or sooner determination as the case may be, promptly agree upon the modalities and take all necessary steps to complete the aforesaid process of transfer of assets, including the specifications & standards to be maintained as on the Termination Date. 11.4.7 Each party shall pay the other party the various payments due as on the termination date in accordance with this agreement. 11.4.8 Upon the Concessionaire conforming to all Divestment Requirements and handing over the possession of the Project Facility to AAI as per this Article 11.4, AAI shall issue a “Vesting Certificate” which will have the effect of constituting evidence of divestment of all rights, title, interests and lien in the Project Facility by the Concessionaire and their vesting in AAI pursuant hereto. 11.4.9 The Parties shall perform/discharge their respective obligations to be performed or discharged under the provisions of this Agreement on the termination in entirety, and unless otherwise provided in this Agreement, the cost involved in transfer contemplated shall be shared by the respective Parties. 11.5 Rights of AAI on Termination

Notwithstanding anything contained in this Agreement, AAI shall not, as a consequence of Termination or otherwise, have any obligation whatsoever including but not limited to obligations as to compensation for loss of employment, continuance or regularization of employment, absorption or re-employment on any ground, in relation to any person in the employment of or engaged by the Concessionaire in connection with the Project.

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Airports Authority of India

ARTICLE 12 DISPUTE RESOLUTION 12.1 Amicable Resolution

12.1.1 Save where expressly stated to the contrary in this Agreement, any dispute, difference or controversy of whatever nature between the Parties, howsoever arising under, out of or in relation to this Agreement (the “Dispute”) shall in the first instance be attempted to be resolved amicably in accordance with the procedure set forth in the clauses below. 12.1.2 Either Party may require such Dispute to be referred to the Chairman, AAI and the Managing Director of the Concessionaire for the time being (in case of consortium the Managing Director of the Lead Member. for amicable settlement. Upon such reference, the two shall meet at the earliest mutual convenience and in any event within 15 days of such reference to discuss and attempt to amicably resolve the Dispute. If the Dispute is not amicably settled within 15 (fifteen) days of such meeting between the two, either Party may refer the Dispute to arbitration in accordance with Article 12.2 below. 12.2 Arbitration

12.2.1 Procedure Subject to the provisions of Clause 12.1, any Dispute, which is not resolved amicably, shall be referred to a panel of three (3) arbitrators in terms of the Arbitration & Conciliation Act, 1996. For this purpose AAI will make out a panel of five (5) possible arbitrators. Each party shall nominate an arbitrator out of this panel submitted by AAI and these two arbitrators will appoint the third arbitrator in writing and also inform the concerned parties about such appointment. If within 15 days of receipt of such intimation the other party fails to appoint its arbitrator, the Party seeking appointment of arbitrator may take further steps in accordance with Arbitration & Conciliation Act, 1996. The arbitrator shall give item-wise and reasoned award. Where three (3) arbitrators have been appointed, the award of the majority will prevail. 12.2.2 Place of Arbitration The place of arbitration shall be Chennai. 12.2.3 English Language The request for arbitration, the answer to the request, the terms of reference, any written submissions, any orders and awards shall be in English and, if oral hearings take place, English shall be the language to be used in the hearings. The award shall be made in writing.

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Airports Authority of India

12.2.4 Enforcement of Award The Parties agree that the decision or award, which shall be a speaking order, resulting from arbitration shall be final and binding upon the Parties and shall be enforceable in accordance with the Provision of the Arbitration and Conciliation Act, 1996 subject to the rights of the aggrieved parties to secure relief from any higher forum. 12.2.5 Performance during Arbitration Pending the submission of and/or decision on a Dispute and until the arbitral award is published, the Parties shall continue to perform their respective obligations under this Agreement without prejudice to a final adjustment in accordance with such award.

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Airports Authority of India

ARTICLE 13 REPRESENTATIONS AND WARRANTIES, DISCLAIMER 13.1 Representations and Warranties of the Concessionaire

The Concessionaire represents and warrants to AAI that: a. b. c. It is duly organized, validly existing and in good standing under the laws of India; It has full power and authority to execute, deliver and perform its obligations under this Agreement and to carry out the transactions contemplated hereby; It has taken all necessary corporate and other action under Applicable Laws and its constitutional documents to authorize the execution, delivery and performance of this Agreement; It has the financial standing and capacity to undertake the Project; This Agreement constitutes its legal, valid and binding obligation enforceable against it in accordance with the terms hereof; The execution, delivery and performance of this Agreement will not conflict with, result in the breach of, constitute a default under or accelerate performance required by any of the terms of the Concessionaire Memorandum and Articles of Association or any Applicable Law or any covenant, agreement, understanding, decree or order to which the Concessionaire is a party or by which Concessionaire or any of its properties or assets are bound or affected; There are no actions, suits, proceedings or investigations pending or to the Concessionaire’s knowledge threatened against the Concessionaire at law or in equity before any court or before any other judicial, quasi judicial or other authority, the outcome of which may constitute the Concessionaire Event of Default or which individually or in the aggregate may result in Material Adverse Effect; It has no knowledge of any violation or default with respect to any order, writ, injunction or any decree of any court or any legally binding order of any government authority which may result in Material Adverse Effect; It has complied with all Applicable Law and has not been subject to any fines, penalties, injunctive relief or any other civil or criminal liabilities which in the aggregate have or may have Material Adverse Effect; No representation or warranty by the Concessionaire contained herein or in any other document furnished by the Concessionaire to AAI or to any government authority in relation to Applicable Permits contains or will contain any untrue statement of material fact or omits or will omit to state a material fact necessary to make such representation or warranty not misleading; and The Concessionaire also acknowledges and hereby accepts the risk of inadequacy, mistake or error in or relating to any of the matters set forth above and hereby confirms that AAI shall not be liable for the same in any manner whatsoever to The Concessionaire. The Concessionaire shall make its own arrangements in engagement of its staff and labour and shall at no point represent to or claim that the staff, labour is being recruited for and on behalf of AAI. The Concessionaire shall at all times comply
Concession Agreement-MLCP, Chennai 44

d. e. f.

g.

h.

i.

j.

k.

l.

Airports Authority of India

and represent to the staff and labour employed / engaged by them the requirement for complying with Applicable Laws and applicable Permits, particularly in relation to safety and environmental regulations. 13.2 Obligation to notify change

In the event that any of the representations or warranties made/given by the Concessionaire ceases to be true or stands changed, it shall promptly notify AAI of the same.

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Airports Authority of India

ARTICLE 14 MISCELLANEOUS 14.1 Interest and Right of Set Off Any sum which becomes payable under any of the provisions of this Agreement by one Party to the other Party shall, if the same be not paid within the time allowed for payment thereof, shall be deemed to be a debt owed by the Party responsible for payment thereof to the Party entitled to receive the same. Such sum shall until payment thereof carry interest at 12% per annum from the due date for payment thereof until the same is paid to or otherwise realised by the Party entitled to the same. Without prejudice to any other right or remedy that may be available under this Agreement or otherwise under law, the Party entitled to receive such amount shall also have the right of set off. Provided the stipulation regarding interest for delayed payments contained in this Article 14.1 shall neither be deemed nor construed to authorise any delay in payment of any amount due by a Party nor be deemed or construed to be a waiver of the underlying breach of payment obligations. 14.2 Governing Law and Jurisdiction This Agreement shall be governed by the laws of India. The Courts at Chennai shall have exclusive jurisdiction over all matters arising out of or relating to this Agreement. 14.3 Waiver 14.3.1 Waiver by either Party of any default by the other Party in the observance and performance of any provision of or obligations under this Agreement: (i) (ii) (iii) shall not operate or be construed as a waiver of any other or subsequent default hereof or of other provisions or obligations under this Agreement; shall not be effective unless it is in writing and executed by a duly authorised representative of such Party; and shall not affect the validity or enforceability of this Agreement in any manner.

14.3.2 Neither the failure by either Party to insist on any occasion upon the performance of the terms, conditions and provisions of this Agreement or any obligation hereunder nor time or other indulgence granted by a Party to the other Party shall be treated or deemed as waiver/breach of any terms, conditions or provisions of this Agreement. 14.4 Survival

Termination of this Agreement (a) shall not relieve The Concessionaire or AAI of any obligations already incurred hereunder which expressly or by implication survives Termination hereof, and (b) except as otherwise provided in any provision of this Agreement expressly limiting the liability of either Party, shall not relieve either Party of any obligations or liabilities for loss or damage to the other Party arising out of or caused
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Airports Authority of India

by acts or omissions of such Party prior to the effectiveness of such Termination or arising out of such Termination. 14.5 Amendments

This Agreement and the Schedules together constitute a complete and exclusive understanding of the terms of the Agreement between the Parties on the subject hereof and no amendment or modification hereto shall be valid and effective unless agreed to by all the Parties hereto and evidenced in writing. 14.6 Notices

Unless otherwise stated, notices to be given under this Agreement including but not limited to a notice of waiver of any term, breach of any term of this Agreement and termination of this Agreement, shall be in writing and shall be given by hand delivery, recognized courier, mail or facsimile transmission and delivered or transmitted to the Parties at their respective addresses set forth below: Executive Director (ADC) Airports Authority of India Rajiv Gandhi Bhawan New Delhi 1100 03. If to the Concessionaire Address --------------------------Fax No. --------------------------Or such address, or facsimile number as may be duly notified by the respective Parties from time to time, and shall be deemed to have been made or delivered (i) in the case of any communication made by letter, when delivered by hand, by recognized courier or by mail (registered, return receipt requested) at that address and (ii) in the case of any communication made by facsimile, when transmitted properly addressed to such facsimile number. 14.7 Severability

If for any reason whatsoever any provision of this Agreement is or becomes invalid, illegal or unenforceable or is declared by any court of competent jurisdiction or any other instrumentality to be invalid, illegal or unenforceable, the validity, legality or enforceability of the remaining provisions shall not be affected in any manner, and the Parties shall negotiate in good faith with a view to agreeing upon one or more provisions which may be substituted for such invalid, unenforceable or illegal provisions, as nearly as is practicable. Provided failure to agree upon any such provisions shall not be subject to dispute resolution under this Agreement or otherwise.

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14.8

No Partnership

Nothing contained in this Agreement shall be construed or interpreted as constituting a partnership, association, or a joint venture between the Parties. Neither Party shall have any authority to bind the other in any manner whatsoever except as provided under this Agreement. AAI is also not a principal employer in regard to the activities of the Concessionaire or the Sub-Licensee. 14.9 Language

All notices required to be given under this Agreement and all communications, documentation and proceedings which are in any way relevant to this Agreement shall be in writing and in English language. 14.10 Exclusion of Implied Warranties etc. This Agreement expressly excludes any warranty, condition or other undertaking implied at law or by custom or otherwise arising out of any other agreement between the Parties and any representation by any Party not contained in a binding legal agreement executed by the Parties. 14.11 Counterparts This Agreement may be executed in two counterparts, each of which when executed and delivered shall constitute an original of this Agreement but shall together constitute one and only the Agreement. 14.12 Employees of Concessionaire The employees/ staff of the Concessionaire shall not be deemed or construed to be the employees of the AAI. The Concessionaire understands and undertakes that its employees/ staff shall make no claim against the AAI for any reasons whatsoever. Further, the Concessionaire also agrees that the AAI shall not be liable for any accident/ injury or claims of the workers/ employees during the execution of the developmental works under the present Agreement. IN WITNESS WHEREOF THE, PARTIES HAVE EXECUTED AND DELIVERED THIS AGREEMENT AS OF THE DATE FIRST ABOVE WRITTEN. SIGNED SEALED AND DELIVERED For and on behalf of AAI by (Signature) (Name) (Designation) In the presence of: 1) 2)

For and on behalf of the Concessionaire by: (Signature) (Name) (Designation) 1) 2)
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Airports Authority of India

SCHEDULE-A

Plans / Drawings of the Site and Specified Area (ATTACHED WITH RFP)

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Airports Authority of India

SCHEDULE B (CONSORTIUM AGREEMENT / MEMORANDUM OF AGREEMENT) This Consortium Agreement/Memorandum of Agreement is executed at ------- on this _________ day of _________2010. BETWEEN M/s, _______________, a Company incorporated under the Companies Act, 1956 and having its Registered Office at _______________ acting through its Managing Director, _______duly authorised by a resolution of the Board of Directors dated______ (hereinafter referred to as the ‘LEAD MEMBER’ which expression unless excluded by or repugnant to the subject or context be deemed to mean and include its successors in interest, legal representatives, administrators, nominees and assigns) of the ONE Part; AND M/s _________, a Company incorporated under the Companies Act, 1956 and having its registered Office at_____________ and Office at_______________, acting through its Managing Director, _________, duly authorised by a resolution of the Board of Directors dated ___________(hereinafter referred to as the (‘Participant member’) which expression unless excluded by or repugnant to the subject or context be deemed to mean and include its successor in interest, legal representatives, administrators, nominees and assigns) of the OTHER RART’. Whereas Airports Authority of India (hereinafter referred to as ‘AAI’) has invited proposals for the “Multi Level Car Park with Commercial Development at Chennai Airport on BOOT mode” in terms of the RFP Document issued for the said purpose and the eligibility conditions require that the applicants bidding for the said purpose and the eligibility conditions require that the applicants bidding for the same should meet the conditions stipulated by AAI for participating in the bid by the Consortium for handling the project for which the RFP has been floated by AAI. AND WHEREAS in terms of the bid documents both the parties jointly satisfy the eligibility criteria laid down for a bidder for participating in the bid process by forming a Consortium between themselves. AND WHEREAS both the parties hereto have discussed and agreed to form a Consortium for participating in the aforesaid bid and have decided to reduce the agreed terms to writing. NOW THIS CONSORTIUM AGREEMENT / MEMORANDUM OF AGREEMENT HEREBY WITNESSTH: A. That in the premises contained herein the Lead Member and the Participant Member having decided to pool their technical know-how, working experiences and financial resources, have formed themselves into a Consortium to participate in the RFP process for “Multi level car park with commercial development at
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Airports Authority of India

B.

C.

D.

E.

F.

G.

H.

I.

Chennai Airport” in terms of the RFP invited by Airports Authority of India, (AAI). That the members of the Consortium have represented and assured each other they shall abide by and be bound by the terms and conditions stipulated by AAI for awarding the concession to the Consortium so that the Consortium may take up the aforesaid “Multi level car park with commercial development at Chennai Airport” in case the Consortium turns out to be the successful bidder in the bid being invited by AAI for the said purpose. That the members of the Consortium have satisfied themselves that by pooling their technical know-how and technical and financial resources, the Consortium fulfils the pre-qualification / eligibility criteria stipulated for a bidder, to participate in the bid for the said RFP process for “Multi level car park with commercial development at Chennai Airport”. That the Consortium have agreed to nominate any one of ____________, __________ and ________________ and the common representative who shall be authorised to represent the Consortium for all intents and purposes for dealing with the Government and for submitting the bid as well as doing all other acts and things necessary for submission of bid documents such as RFP Document, Mandatory Information, Financial Bid, etc. and such other documents as may be necessary for this purpose. That the share holding of the members of the Consortium for this specified purpose shall be as follows :a. The Lead Member shall have _____percent (__ %) of share holding with reference to the Consortium for this specified project. b. The Participant Member shall have _______ (__ %) of share holding with reference to the Consortium for this specified project. That in order to fulfil the requirement of the RFP process and also keep an altogether separate legal entity of the Consortium, the Members of the Consortium undertake to provide their own nominees as share holders to the extent of their respective share holding for the purpose of formation of a Special Purpose Company (SPC) through which the Consortium proposes to undertake the “Multi level car park with commercial development at Chennai Airport”. That if any change in the membership of the Consortium be required to be made by the members of the Consortium, the same shall be done with the consent of AAI subject to the conditions as may be stipulated by them in this regard. That in case to meet the requirements of bid documents or any other stipulations of AAI, it becomes necessary to execute and record any other documents amongst the members of the Consortium, they undertake to do the needful and to participate in the same for the purpose of the said project. That it is clarified by and between the members of the Consortium that execution to this Consortium Agreement / Memorandum of Agreement by the members of the Consortium does not constitute any type of partnership for the purposes of provisions of the Indian Partnership Act and that the members of the Consortium shall otherwise be free to carry on their independent business or commercial activities for their own respective benefits under their own respective names and styles. This Consortium Agreement is limited in its operation to the specified project.
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Airports Authority of India

J. That the Members of the Consortium undertake to specify their respective roles and responsibilities for the purposes of implementation of this Consortium Agreement and the said project if awarded to the Consortium in the Memorandum & Articles of Association of the proposed Special Purpose Company to be got incorporated by the Consortium Members to meet the requirements and stipulations of AAI. IN FAITH AND TESTIMONY WHEREOF, THE PARTIES HERETO HAVE SIGNED THESE PRESENTS ON THE DATE, MONTHS AND YEAR FIRST ABOVE WRITTEN.

A1.

Authorised Signatory (________________) For (Name of Company)

A2.

Authorised Signatory (________________) For (Name of Company)

WITNESSES:

1._________________

2.________________

Enclosure: • Board resolution of each of the consortium members authorising execution of the consortiums agreement and appointing the authorised signatory for such purpose.

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