MoRTH Issues Amendments To The Model Concession Agreement For BOT (Toll) Model

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Pursuant to extensive deliberations with the implementing agencies and the sector stakeholders, the Ministry of Road Transport and Highways, Government of India ("MoRTH") issued several amendments to the Model Concession Agreement for Build Operate Transfer (Toll) ("BOT (Toll)") road projects ("MCA") on March 15, 2024. Some of the critical amendments are discussed below:

1. Change in Ownership

Earlier, in case of a consortium, each member, whose financial and technical criteria were considered during bid evaluation, was required to hold 26% equity in the concessionaire/ project SPV for the construction period and a period of 1 (one) year from the date of completion of Punch List (as defined in the MCA). An amendment has been made to the above provision to clarify that each such member shall hold: (a) 26% of such equity in the concessionaire which will also not be less than 5% of the Total Project Cost; and (b)