MoRTH Issues Amendments To The Model Concession Agreement For Build Operate Transfer (Toll) Model

Pursuant to extensive deliberations with the implementing agencies and the sector stakeholders, 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 as follows:

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 special purpose vehicle 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 is made to the above provision to clarify that each such member must hold: (a) 26% of such equity in the concessionaire which will also not be less than 5% of the Total Project Cost (as defined in the MCA); and (b) this period of 1 (one) year that is computed from the date of completion of the Punch List