TAT TTT TSTAPE TTPTETOT — guensno sn nenven vleare eerert net (tau 8 250907 hways Authority of India ‘< ) National Hi Minty ol Rood Traespert ana Highways) | e, Bret 0, ae, Pees No. NIIALCGM (CMCY2015/1688 | Io | All COMM, eehsiea Divison, | NIIAL--11Q. | ‘Sub: Iesuance of Completion Certificate or Provisional Completion Certfente in | respect of PPP Projccts, The issuance of Completion Cetiate or Provisional Completion Cextfcle in respect of PP Projects was deliberated by te Exeutive Conunitee in is 238° meting hl | on 2.082015 and it was decided that heneofoath the Completion Ceuifiste/Prvislonal | niet for PRP projects sal be asad by he I without seeking pie clean fom NHAL or any oer Authority as perthereleas! provisions of the Concession Auvement 2. _lt as also decided that the instructions may be issued by the concemed ‘Techical Division to the IES appointed for PPP projets under their jusdiction as per the letter approves by the Competeat Authority (copy enclosed). Accordingly, all Technic! Divisions ae requested to issue the enclose leter to tho IES appointed for PPP projects under their Jursdeton, 3. Thishs the approve of Competeat Auto ote a ve S s Hci aan ( Or © ae A) ages Tyke rainy < sy Com (res)~eme co HMO oa 1. PS t0Chaiman, NAL 2. PS toMember (PPP) 3. PS toMember Fn/Adniy ‘4. PS to Member (Tech). 5. PSwCVO, NAL 5 AlLROs ane Ps Frnfomaton snd ess ston plese. ssl 0) Fw 4/PIU ° eee oroMw Suh: Issuance of Completion Certificate or Provisional Completion Certificate in respect of PPP Prujects, Issue of Coipletion Certfieate or Provisional Completion Certificate (PCC) in ‘espoet of PPP projects hs heen one ote critical activites which needs ia be aecomplishe cautiously as undue delay in issue of certificate resils in lost of revenue to. the Concessionaire (and ulso to the Government in ease of revere shating/annity projects) and issuing certificate in haste may ewse inconvenionce wo safety hazatds 10 the road uve: besides undue benefit to the Concessionive. Article 14 of the MCA makes provisions for issue of Completion Certificate 2. _ The Sehedul-Q of Model Concession Agreement also defines the “Terms of Reference” for independent Bingincer which stipulates role and functions ofthe Indepencent Fngincer (Para 3). One of functions of IF is 1o conduct Tests on completion of constuction ‘nd isuing completion/provisional Completion Certificate, Farther as per Para 5.13 of TOR of IE, the Independent Engincer shall eary out, ar cause to be earied out, all the Tests specitied in Schedule- and issue « Completion Certfiewte or Provisional Certificate. as the fase may be. Vor carrying out its (unetions under this Paragraph 5.13 and all matter ‘incidental thereto. the Tndependent Engineer shall at under and in accordance with the Provisions of Amiele 14 and Schedules Further as per para 32 of TOR, the Independent Engineer shall discharge its duties in a {air impartial anc efficient mame, consistent with the highest standards of profescicnal Integrity and Good Industry Practice, 3. (An Per standard REP for IE issued by NHI, the Independent Enginocr shall appoint its authorined representative, who sal issue on behalf ofthe IF the Provisional Completion Cettiicale und Completion Cersfeate along with the Tears Leader a shall carry ont en Such task 48 may be decided by NTUAL The IE ahall take prior approval of NHAT betore ‘ssuing Provisional Completion Cenitieae and Completion Cextfcate, 4. __Aveonliagly, a per the practice. the proposal for iste of eettcae is pepe and Fscommended by the Independent Engineer GE) and then by Regional OMice.? ect Director and is processed in the Headquarters for issue of enews by the UE Recents otept of Inspection Commis has alo bec inteadueed which spo the site fier ec othe proposaltifieale in the Concession ms Isolux Kishaugirh Beas 04 the following view 5. The issne seyarding authority vo isue completion Agroement came foe disoussion in MP. $31/2014 ollway P-Lid. Vés NAL. The Hamble High Court exp “The above classes make it lear tha Authority which has to issue PCC isthe 1B Clause does not requee 1 LE to seek prior clearance from the NILA! o any ther Authority for tsmee ofthe PCC. Ifthe 1. 8 satisfied that the necessur pre conditions have heen sisfied th it should proceed tssue the PCC: ‘The neo main factors that have to be ensured before the PCC ir issued are ‘safety: and ‘relabity’ In orher words, the LE. will have to ensure that the highway ‘in question is Bou sofe and velable for public use before It eonld grant the PCC: for commencement of commercial operation. For this, it faut 10 ensure that there ts Substantial compliance with the Schedule‘ Tests." 5. ‘The matter has been considered and it has boon decided that the Independent Fngincer will issue Completion Cetitiate or Provisional Completion Certificate as the ease may be withoot seeking prior clearance ffom NHAT or any other Authority as per relevant prov of Concession Agreement, 7. _Tchas been observed shat IRs are performing their role easualy in these nates and the proposos which they submit are not complete and notin compliance to the provisions of the Concession Agreement. Sometime the items of work Which are required to be completed {or sufe nd reliable operation of the project highway are proposed 0 be include inthe puch list, Ithas also been observed that due consideration tothe quality of work isnot given before recommending Provisional Completion Certfeete. This is pethaps considering that ‘imately NHAI will approve the proposal: the IE did not show seriousness in recanimending ‘he proposal for Completion Ceetifcae 8 Reference is invited to Clause 14.5 of the MCA which provides for withholding of Provisional Contiticate if itis determined thatthe Projet Highway of any part thereof dos ‘ot conform to the provisions of the agroement ud cannot be safely and reliably placed in ‘commercial operation. The elnuse provides for ation fo be taken in such eventuality. 9. Henceforth, since the IE will be the Authority to issue of Provisional Completion Certificate, they should take the ee responsibility for compliance ofthe provisions of the Concession Agreement before issve of the Completion Certificate, It shoold be kept i md tht issue of Completion Certifeats i inked with the stat of tolling forthe project. Ui issue of the corticate without due regard 10 the ‘safely’ & elisblily” aspects ot ‘contravention ofthe Concession Agiesment may invite complaints and public rtiism. ‘The 1 hasta therefore act stictly as per the Concession agreement keeping the overall pubic interest in view in a fir and impartial manner consistent with the highest standicd of Professional inteyrity. This responsibilty has to be exercised by the IE: Agency which hastea ds cone with NEAL AA ae De Ye ype dn Wis iia neg any bes wn a ene should Uerofne daly aa the Sr Ines 3 pr cia os ensane tha ie re a sn Begins The eile ps etc ho ‘or Pisa nities me chose Annes. be gies bl in ole mui the tle of He 38 sip in the segpecive esponathily’ Karena: dh provisions of Mill unels ie wit highest st Buck: AvaboweAnes CcektinGwidlines tor tndependent Eagincer (IE) reganting Completion Covttcate/Provisional Certificate for PPP Projects While issuing Movisional Centcate wr Cemphtion Centeate far any PPP prvi, UF shall satisfy dhemsctves chat all provisions and eoniions fad koa the wlened sotit(s anor Concession Agroaeat with sent issue of such Prisional Cer 2 Completion Certfcate have besn wompled ith. Such saisietion of I shall eanomg Sinus suc peronnanes uid ls inlet Following 1 Projet tfighway hes been eonstmcted as spite! in the Sehelle-8 and Schedule an in cootonnity with the Specifications and Stondards set forth in SchedleeD of the Convession Agreement All Tests have been conducted in secordance with Schedules and heve ben ‘witnessed by representative ofthe Authority (NHIAI), ‘The I: shall observe, monitor tad review the reslls ofthe Tests to determine compliance ofthe Project Highway with Specifications and Standards. ‘The IE shall ensure thot the Tests are successful 1nd the Project Highwey ean be safely an reliably placed in commercial operation 3. TE shill ensure that the Concessionste shall comply with the provisions of the Concession Agreement, Applicable Laws end Applicable Permits and conform to Good Industry Practve for Securing the safety ofthe Uses. ‘Project Highway tas been constructed in accordance with the Project Completion Shed set ft in Schedule-G of the Concession Agreement. In the event of file ofthe Concessionsire to achieve any Project Milestone, sction a8 per relevant Drovsion of the Concession Agreement imay be completed or proposal may. be ‘referred for spproval of Competent Authority with the recommendation ofl SApnroval of the Competent Authority for proposalsue of Change uf Scope (Gositve/negative,ifany, has been obtained, & Incase ofthe Provisional Certificate, ist of oustanding items (Punch List has been Prepare nd signed jointly bythe tndependewt Enincer end the Coneessionate, ‘The Puc List shall inclage only those items of work shih ane minor in nature and not aftcting the safety and reliability a the Project Highway 7. Al lapses. defects or deficlences observed by the Independent’ Engineer in the onstruction of the Projeet Highisay are rected and wll NCRS iste ae closed in ‘ecordonce wit the pro