The model concession agreement (MCA) will be applied by the Shipping Ministry for state government-owned ports at Sagar Island in West Bengal and Dugarajapatnam in Andhra Pradesh. The total investment in these two greenfield ports will be Rs 15,800 crore. MCA includes the terms and conditions of a port contract including the rights and obligations of both parties.
The privatisation of six airports in the country is under review as AAI is expected to invite fresh bids for the same. The privatisation process, which was initiated by the UPA government last year has gone through various changes and delay. The previous government had expressed certain reservations in the model concession agreement (MCA). AAI is set to invite request for quotation.
Unconfirmed reports indicate that the government would revamp the model concession agreements (MCAs) for public private partnership (PPP) projects in the highway sector. It may be noted that the existing MCAs have outlived their utility and there are no provisions for addressing emerging problems in many such projects. The
The road ministry is considering drafting a new contractual framework for building expressways that will be more investor-friendly. The new model concession agreement (MCA) for expressways will address the issue of revenue collection and overcome the limitations of the existing contractual agreement. Expressways are access-controlled and have closed tolling. The NHAI has created a separate division to handle big expressway projects.
While issues related to banking and financing, claims and contracts continue to discourage contractors, CW highlights problem areas and offers 16 concrete solutions that will help resolve issues and make the construction sector a success.