Section 11: BOT agreement

11. BOT agreement (1) Notwithstanding any other enactment but subject to this Act, a contracting authority may, after informing Cabinet through the Minister responsible for that contracting authority, enter into an agreement with a private party for the purpose of implementing a BOT project. (2) Every agreement shall include provisions for— (a) the rights and obligations of the contracting authority and private party; B13 – 5 [Issue 10] (b) the period of execution of the project; (c) the relevant financial terms; (d) the conditions for the supply of services; (e) the management of performance of the private party; (f) the sharing of technical, operational, commercial and financial obligations and responsibilities among the parties; (g) the termination of the agreement in case of breach of terms and conditions by either party, or otherwise; (h) the remedies in the event of default by either party, including lenders’ step-in-rights; (i) the return of the assets to the contracting authority, at the termination or expiry of the agreement, in such manner as may be provided for in the agreement; and (j) such other requirements as may be prescribed. (3) Every agreement shall— (a) be governed by, and construed in accordance with, the laws of Mauritius; (b) provide for disputes between the private party and contracting authority to be resolved by amicable settlement, mediation or arbitration according to the rules specified in the agreement; (c) as soon as practicable, be laid before the National Assembly by the contracting authority. (4) This section shall also apply to a BOT project referred to in section 3 (2).