GRANT OF A CONCESSION

(1) The concession shall be granted by the board or any other Government department / body or jointly to a bidder who: a) satisfies the stipulated financial, technical, organizational and legal standards; and b) Whose bid is the lowest / is in most favourable terms for the project, based on the present value of its proposed tolls, rentals, charges and period of concession over a fixed term for the project to be constructed, rehabilitated, operated and maintained as per the stipulated minimum design and performance standards, plans and specifications. (2) The purpose of the financial package governing any sector or the concessions to be granted for any project shall be to ensure that the same is financially viable and bankable to attract maximum private investment. The board may have to make substantial investments or grant substantial concessions to make a project viable -the same shall however be governed by appropriate directions of Central and State Government. (3) Immediately after the completion of the second stage evaluation, a decision on whether or not to award the contract shall be taken by the Board. (4) If the Board takes a decision to award the contract, the Board shall issue to the proposed awardee, the notice of award immediately after such decision. (5) The notice of award shall indicate, amongst others, the time within which the proposed awardee shall submit the specified performance security, proof of equity contribution, financing resources, and any other requirements specified in tender. In the case of a joint venture or consortium, the agreement indicating that the members are jointly and severally responsible for the obligations of the Concessionaire under the contract. (6) The successful bidder shall be granted the concession for the development and / or operation and / or maintenance of the project, including the right to collect the specified tolls, tariffs, rentals and charges, etc. (7) Withdrawal of any member of a joint venture bidder prior to the Actual award or implementation of the project, can be a ground for cancellation of the contract and forfeiture of that bidder's bid security. The Board may, however, proceed with the award of the contract for the implementation of the project, if it is of the opinion that the other members of the joint venture or consortium are still capable of carrying out the project or that they have provided a suitable and acceptable substitute with equal or better qualifications. (8) The bid and the bid securities shall be kept valid till the process of selection of bidders and the grant of concession is completed. Once the concession is granted, the bid securities shall be returned to the unsuccessful bidders. (9) In the event of refusal, inability, or failure of the successful bidder with the lowest complying evaluated bid to make good his bid by entering into Concession Agreement with the board within the specified period; the board shall forfeit the bid security of such bidder. In such an event, the Board shall consider the next complying and qualified lowest evaluated bid for the award. If the same too fails to execute the Concession Agreement, its bid security shall likewise be forfeited, and the Board shall consider the next complying and qualified lowest evaluated bid, and so on until a contract has been entered into. In case, the Board is unable to execute the contract with any of the complying and qualified bidders due to the refusal of the latter, the project shall be subjected to re-bidding. (10) When no bids are received, the bidding shall be declared a failure. In such a case, Fresh bidding shall be called for the concerned project.