Section 4, The Public-Private Partnership Act, 2010

(1) A Public-Private Agreement (PPP Agreement) is anagreement between a contracting authority and a private partner, made in accordance with this Act in which the private partner– (a) agrees to perform or undertake any infrastructure project or social sector service project; (b) assumes financial, technical or operational risks in connection with the performance of a public function or the use of public property; and (c) receives consideration for performing a public function or utilising public property, by way of– (i) a fee from any revenue fund or budgetary fund of the Government; (ii) user levies collected by the private partner from end-users or customers for a service provided by the private partner; or (iii) a combination of the consideration paid under subparagraphs (i) and (ii). 6 7 Nature of PPP Agreement. Application. Exclusion of public procurements, privatizations, etc. (2) A PPP Agreement shall provide for such matters as the parties consider appropriate, but shall include– (a) the nature and scope of works to be performed and services to be provided by the private partner; (b) the conditions for provision of services and the extent of exclusivity, if any, of the private partner’s rights under the PPP Agreement; (c) the assistance that a contracting authority may provide to the private partner in obtaining licences and permits to the extent necessary for the implementation of the PPP Project; (d) the return of assets, if any, to a contracting authority, at the termination or expiry of the PPP Agreement, in such manner as may be provided for in the PPP Agreement; (e) in the case of a PPP Project for infrastructure, procedures for the review and approval of engineering designs, construction plans and specifications by the contracting authority and the procedures for testing and final inspection, approval and acceptance of the PPP Project; (f) the rights of the contracting authority, or of a regulatory agency, to monitor the works to be performed and services to be provided by the private partner, and the conditions and extent to which the contracting authority or the regulatory agency may order variations in respect of the works and conditions of service or take such other reasonable actions as they may find appropriate to ensure that the PPP Project is properly operated and the services are provided in accordance with the applicable legal and contractual requirements; (g) the extent of the private partner’s obligation to provide the contracting authority or regulatory agency, as appropriate, with reports and other information on its operations; (h) mechanisms to deal with additional costs and other consequences that might result from any order issued by contracting authority, or another public authority, including any compensation to which the private partner might be entitled; (i) any rights of the contracting authority to review and approve major contracts to be entered into by the private partner, in particular with the private partner’s own shareholders or other affiliated persons; (j) guarantees of performance to be provided and insurance policies to be maintained by the private partner in connection with the implementation of the PPP Project; (k) remedies available in the event of default of either party; (l) the extent to which either party may be exempt from liability for failure or delay to comply with any obligation under the agreement owing to circumstances beyond its reasonable control; (m) the duration of the PPP Agreement and the rights and obligations of the parties upon its expiry or termination; (n) the manner for calculating compensation under this Act as provided under section 22; 8 9 (o) the governing law and the mechanisms for the settlement of disputes that may arise between the contracting authority and the private partner; (p) the rights and obligations of the parties with respect to confidential information; (q) the relevant financial terms; (r) the sharing of risks between the contracting authority and the private partner; (s) the payment to the private partner by way of compensation from a revenue fund or of user levies collected by the private partner for a service provided by it as provided under section 9; and (t) such other information as may be prescribed.