Wastewater Treatment Agreement

The draft agreement contains exemption provisions (C.1.10) and contains a well-developed dispute resolution provision (CL 9). The host government`s objective is (i) to improve and expand the current drinking water system to ensure a 24-hour water supply, improve drinking water quality, expand the customer base, ensure effective wastewater treatment and disposal, improve water supplies to poor and backward communities, and ensure financial self-sufficiency. Article 8 introduces the concepts of parties acting in fairness and faithful faith. The usefulness of such a provision is questionable because – if the contract is in a civil law system, it is likely that a similar term is in the act anyway and, therefore, the reference to it will not add anything to it (and may be confusing as to whether the parties attempted to introduce an obligation other than the law); in the common law, there is no general principle to avoid a contract because a party does not act in good faith (unless it is fraudulent or misrepresented before the contract is signed) and the courts may have difficulty interpreting the provision. Experience Since coming into force (including possible changes) / whether the draft form has been applied or not: . Where the owner is willing to transfer a lot of responsibilities to the operator in exchange for improvements in the system. . Significant investments are needed to improve assets, reduce leakage and increase the frequency (with the 24/7) target of providing electricity (rate increase will cancel the balance of the contract). In most contracts, the operator will get his own electricity system – an important issue, because electricity is one of the biggest costs for operating a water system.

Circumstances in which this contract may be appropriate: if the incentives are primarily on reducing leakage and not on reducing the deficit, the text should be amended when the water and sanitation contract for the operation and maintenance of water and sanitation systems in an urban sanitation system is amended and the operator is prepared to operate only parts of the sanitation system. Provisions that are not recommended to reproduce/may need to be reconsidered: existing workers are transferred (or detached) dispute resolution – the contract provides for negotiation, mediation and arbitration. . Performance-based charge related to the reduction of the utility`s deficit each year (by reducing leaks and non-revenue links, increased revenues due to better billing and higher rates) Operators pay the fixed fee – the performance-based fee – the percentage of work for the management of the investment plan and factories.

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