B. Establishment of the concessionaire 24 37 8

1. The concessionaire as a consortium 24 28 8

2. The concessionaire as an independent legal entity 29 37 10

Your company would like to acquire the oil rights in Akmata on a royalty basis.

Chapter III. Selection of the concessionaire (A CN.9 444 Add.4)

It was observed that the right of the host Government to purchase the concession from the concessionaire presented another possibility for dealing in a flexible manner with the duration of the concession.

The concessionaire shall have a right of cabling for the purpose of placing and operating basic and distribution networks on property belonging to third parties, which shall entitle the concessionaire to the following

B. Establishment of the concessionaire

The concession is held by local businessman Floyd Thomas, through his company, Jungle Waters.

1. The Government is authorized to make available to the concessionaire the land, buildings or other property required for the execution of the project for the duration of the concession period.

A similar restriction should exist as regards the right of the host Government to approve the granting of a subconcession by the concessionaire (para. 37).

It is proposed that a section discuss the questions of subconcession, assignment of the project company s rights and security interests established to the benefit of the project company s creditors.

Another related term is the word concessionaire , which often is used to refer to the private entity which is awarded the concession by the host Government.

3. The Government may authorize the concessionaire to carry out the expropriation, in which case option 1 the concessionaire shall bear all the costs associated with the expropriation procedure option 2 the project agreement shall establish the respective obligations of the Government and the concessionaire in respect of the costs associated with the expropriation procedure including the payment of compensation arising out of such expropriation, attorney s fees and judicial costs.

In February 1998, the Government terminated the 1.4 million hectare concession of one timber company because it had not yet begun cutting, and immediately began to divide the 1.4 million hectares into new concessions.

4. Legal status of the concessionaire (legislative recommendations 6 8 and paras. 20 34)

1. The concessionaire as a consortium

Some laws expressly recognize that interest by allowing the project company to create a security interest over the concession, the rights arising from the concession or the property involved, with the consent of the host Government.

In other legal systems, however, the host Government usually has the right to alter the terms of a concession when the public interest so requires, subject to compensation to the concessionaire.

The purpose of the project company shall be limited to the execution and operation of the project for which the concession was awarded.

There also appears to be no limit on the amount of 150,000 hectare concessions that may be granted, which is especially troubling given that front companies have been used to circumvent restrictions on concession size in the past.

Thus, national laws often authorize the host Government to grant an exclusive right to the project company to pursue the activity that is the object of the concession.

The rationale for including the construction period in the total concession period is to encourage the project company to complete the construction works ahead of schedule, so as to benefit from a longer period of concession.

2. The concessionaire as an independent legal entity

In Brazil, the television channels are public concessions.

Cotterell company makes a lot of products we can dispose of.

Where multiple concessions are awarded for the same sector, the host Government may expect that the competition among the concessionaires will have a certain regulatory effect and will be conducive to achieving efficiency and quality targets.

In addition to a lack of legal guarantees, the Government of Suriname has granted or is in the process of granting multiple concession areas to multinational companies, many of which have dubious environmental and human rights records.

The expressions concession agreement and concession contract are used in some legal systems to refer to the agreement between the host Government and the project company or consortium setting forth the conditions for the implementation of the project.

The laws in a number of countries authorize non governmental entities carrying out certain activities, such as public utility undertakings or concessionaires of public services (e.g. railway companies, electricity authorities, telephone companies), to perform certain actions for the expropriation of private property required for providing or expanding their services to the public.

A different approach can be found in national laws which, while still requiring prior approval by the host Government, authorize subconcessions provided that the subconcession is awarded through a competitive method and the subconcessionaire assumes all the rights and obligations of the concessionaire within the scope of the subconcession.

In the interests of fairness, some jurisdictions allow for partial consolidation by exempting the claims of specific creditors and satisfying those claims from particular assets (excluded from the consolidation order) of one of the insolvent companies.

(a) To identify and examine the effects of the methods of work and activities of transnational corporations and business entities with franchises and licences from such corporations on economic, social and cultural rights and the right to development

The Special Rapporteur was informed by the Chairman of the National State Television and Radio Company that prior to 1995, the responsibility for granting licences to private companies was in the domain of the Company.

In cases where the project company is given the right to provide ancillary services, or where the concession involves multiple activities capable of being carried out separately, the project company may wish to engage another entity to carry out some of those activities.

4. The court or other competent authority may authorize the concessionaire to take possession of the property upon opening of the expropriation proceedings and deposit of the value of the property .

2. The minimum capital, form, and duration of the project company shall be as provided in the solicitation of tenders request for proposals notice of award of the concession .

Annex XIII International Finance Corporation (IFC) to the Convention on the Privileges and Immunities of the Specialized Agencies. Washington, 2 April 1959

(a) To identify and examine the effects of the methods of work and activities of transnational corporations and business entities with franchises and licences from such corporations on economic, social and cultural rights and the right to development

44. The Government recently rejected draft contracts for logging concessions of between 3 and 5 million hectares, in favour of concessions no larger than 150,000 hectares.

Many small companies went bankrupt.

B. Establishment of the concessionaire 1. The concessionaire as a consortium National legislation on privately financed infrastructure projects often contains provisions on the legal status of the concessionaire and deals with the question whether the concessionaire has to be established as an independent legal entity or whether the project may be awarded collectively to the selected project sponsors as project consortium.

1. The successful tenderer proposer shall, within ... days from the award of the concession, establish the company with which the project agreement will be entered into.

The Transitional Government has not rescinded fraudulently granted concessions, as recommended by the Forestry Concession Review Committee, preferring instead to refer them to the Ministry of Justice for action.

If the execution of the project is interrupted as a consequence of a governmental act, the project company may be entitled to an extension of the concession period as well as compensation for the damage it sustained.