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Build Own Transfer Agreement

Build Own Transfer Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Build Own Transfer Agreement

"Need a Build Own Transfer Agreement for a solar power plant project in Dubai, UAE, where our company will construct and operate a 100MW facility for 25 years before transferring it to DEWA, with construction planned to commence in March 2025."

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Document background
The Build Own Transfer Agreement is a crucial document in infrastructure development projects within the United Arab Emirates, particularly used in public-private partnerships and major infrastructure initiatives. This agreement type is essential when a government authority wishes to develop infrastructure through private sector expertise while maintaining long-term public ownership. The document comprehensively covers the entire project lifecycle, from initial construction through operational period to final transfer, ensuring compliance with UAE federal laws and local emirate regulations. It includes detailed provisions for construction standards, operational requirements, financial arrangements, risk allocation, and transfer mechanisms. The agreement is particularly relevant in the UAE's developing infrastructure landscape, where there is a strong focus on public-private collaboration and sustainable development of public facilities.
Suggested Sections

1. Parties: Identifies the contracting parties - typically the government/authority and the project company

2. Background: Sets out the context of the project and the parties' intentions

3. Definitions and Interpretation: Defines key terms and establishes rules of interpretation

4. Grant of Concession: Details the rights granted to the project company to build, own and operate the facility

5. Project Site: Provisions regarding the project site, access rights, and site conditions

6. Construction Phase: Requirements for design, construction, testing, and commissioning

7. Performance Security: Requirements for construction and operational performance bonds

8. Operation and Maintenance: Standards and requirements for facility operation

9. Financial Provisions: Payment mechanisms, tariffs, and financial obligations

10. Transfer Provisions: Requirements and process for transfer of facility back to authority

11. Force Majeure: Definition and consequences of force majeure events

12. Default and Termination: Events of default, remedies, and termination procedures

13. Liability and Indemnification: Allocation of risks and responsibilities between parties

14. Dispute Resolution: Procedures for resolving disputes between parties

15. Governing Law: Specifies UAE law as governing law and relevant jurisdiction

Optional Sections

1. Step-in Rights: Provisions allowing lenders or authority to step in and take control - include if project is financed by third-party lenders

2. Environmental Compliance: Detailed environmental obligations - include for projects with significant environmental impact

3. Local Content Requirements: Requirements for local content and employment - include if required by local regulations

4. Refinancing Provisions: Rules regarding refinancing of project debt - include if project involves significant financing

5. Change in Law: Provisions dealing with changes in legislation - include for long-term projects

6. Interface Provisions: Managing interfaces with other contractors/facilities - include for complex infrastructure projects

7. Insurance: Detailed insurance requirements - include as separate section for high-risk projects

Suggested Schedules

1. Project Specifications: Detailed technical specifications for the facility

2. Project Site Details: Maps, surveys, and site-specific information

3. Construction Schedule: Detailed timeline for construction phase

4. Testing and Commissioning Requirements: Procedures and standards for facility testing

5. Performance Standards: Operational performance requirements and metrics

6. Payment Mechanism: Detailed calculation of payments, tariffs, and adjustments

7. Forms of Bonds and Guarantees: Templates for required security instruments

8. Transfer Requirements: Detailed requirements for condition of facility at transfer

9. Required Insurances: List and details of required insurance coverage

10. Environmental Standards: Specific environmental requirements and standards

11. Operating Procedures: Detailed operations and maintenance procedures

12. Form of Direct Agreement: Template agreement between authority and lenders

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Acceptance Certificate
Applicable Laws
Authority
Base Case Financial Model
Completion Date
Concession Period
Construction Period
Construction Schedule
Construction Works
Default Rate
Design Documents
Effective Date
Environmental Requirements
Facility
Final Transfer Date
Financial Close
Force Majeure Event
Good Industry Practice
Government Authority
Independent Engineer
Initial Transfer Date
Insurance Requirements
Lenders
Maintenance Program
Material Adverse Effect
Operating License
Operating Period
Operating Standards
Performance Security
Performance Standards
Project
Project Agreements
Project Company
Project Site
Prudent Utility Practice
Required Consents
Service Requirements
Shareholders
Site Access Date
Specifications
Step-in Rights
Substantial Completion
Technical Standards
Technology License
Termination Date
Testing Requirements
Transfer Requirements
Transfer Schedule
UAE Dirham
Utilities
Clauses
Definitions
Interpretation
Conditions Precedent
Grant of Concession
Project Site
Land Rights
Design Obligations
Construction Obligations
Testing and Commissioning
Performance Security
Project Schedule
Quality Assurance
Health and Safety
Environmental Compliance
Operating Standards
Maintenance Requirements
Financial Obligations
Payment Terms
Revenue Sharing
Performance Monitoring
Reporting Requirements
Insurance
Force Majeure
Change in Law
Default
Termination
Transfer Requirements
Warranties
Indemnification
Limitation of Liability
Intellectual Property
Confidentiality
Assignment
Subcontracting
Dispute Resolution
Governing Law
Notices
Amendments
Waiver
Severability
Entire Agreement
Relevant Industries

Infrastructure

Energy

Transportation

Utilities

Healthcare

Education

Waste Management

Water Treatment

Public Facilities

Industrial Development

Smart Cities

Renewable Energy

Relevant Teams

Legal

Project Finance

Infrastructure Development

Operations

Risk Management

Compliance

Technical Services

Commercial

Strategy

Construction

Facility Management

Investment

Public-Private Partnerships

Relevant Roles

Project Director

Legal Counsel

Contract Manager

Infrastructure Development Manager

Public-Private Partnership Director

Chief Financial Officer

Technical Director

Operations Manager

Risk Manager

Compliance Officer

Investment Director

Construction Manager

Facility Manager

Commercial Director

Strategy Director

Industries
UAE Federal Law No. 2 of 2015: Commercial Companies Law - Governs company formation and operations in the UAE, crucial for establishing the project vehicle and determining ownership structures
UAE Federal Law No. 5 of 1985: Civil Transactions Law (Civil Code) - Provides the fundamental legal framework for contracts and civil transactions in the UAE
UAE Federal Law No. 24 of 2006: Consumer Protection Law - Ensures compliance with consumer protection regulations if the BOT project involves public services
UAE Federal Law No. 4 of 2012: Competition Law - Ensures compliance with competition regulations, particularly relevant for large infrastructure projects
UAE Federal Law No. 8 of 1980: Labor Law - Governs employment relationships and worker rights during construction and operation phases
UAE Federal Law No. 24 of 1999: Environmental Protection and Development Law - Ensures environmental compliance during construction and operation
Local Municipality Construction Regulations: Specific building codes and construction requirements applicable in the relevant emirate
UAE Federal Law No. 18 of 1981: Commercial Agency Law - May be relevant if foreign contractors or operators are involved
UAE Cabinet Resolution No. 1 of 2019: Foreign Direct Investment regulations - Relevant for foreign investment aspects of the BOT project
UAE Federal Law No. 6 of 2018: Arbitration Law - Important for dispute resolution mechanisms in the BOT agreement
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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