Regarding signing of General Bilateral Agreement on Development of Infrastructure / Suprastructure of Klaipėda Seaport
Cat: Material events
On 5th July 2012 AB Klaipėdos nafta (hereinafter, Klaipėdos nafta) and state enterprise Klaipėda State Seaport Authority (hereinafter, the Authority) has signed the General Bilateral Agreement on Development of Infrastructure / Suprastructure of Klaipėda Seaport (hereinafter, the Agreement), whereby parties agreed on main cooperation conditions with respect to development of liquefied natural gas (hereinafter, LNG) terminal project.
The Agreement stipulates undertaking of the Authority to execute works of preparation of Klaipėda Seaport (hereinafter, the Port) for the LNG terminal, including, but not limited to, water area dredging works, navigation and radar equipment and systems installation (upgrade), training of personnel, adoption or amendment of legal acts that are within the limits of the Authority’s competence, performing of additional navigation studies, testing and checking, if necessary. Subject to adoption of a resolution of the Government of the Republic of Lithuania on the mechanism and sources of the compensation for the investments into the Port infrastructure, based on the Agreement Klaipėdos nafta shall finance and organise works, which are intended for the LNG terminal, i.e. works of the Port infrastructure (including, but not limited to, construction of jetty intended for the mooring of the floating LNG storage, high pressure gas platform, servicing platform), and suprastructure, and the Authority shall compensate costs incurred by Klaipėdos nafta with respect to creation of the Port infrastructure. Klaipėdos nafta shall not bear title to the Port infrastructure, because in accordance with applicable laws title to the Port infrastructure may be borne only by the Republic of Lithuania. Klaipėdos nafta shall use the Port infrastructure on the bases of a contract with the Authority.
The Agreement shall come into force following receipt of approval of the board of the Authority, which should be obtained by 20th July 2012, and contractual obligation stipulated in the Agreement shall become effective in full following adoption of a resolution of the Government of the Republic of Lithuania on the compensation mechanism and sources for the investments of the Authority into the Port infrastructure. Further, parties have agreed to conclude an additional agreement on practicalities of cooperation rules and conditions no later than by 10th August 2012.
Implementation of the Agreement shall be controlled and coordinated by the Project Implementation Commission composed of members delegated by both parties. Works of infrastructure and suprastructure shall be procured by public procurement commission composed of representatives of Klaipedos nafta and the Authority. The parties have agreed that public tenders on procurement of infrastructure and suprastructure works may be started immediately after signing of the contract.
In addition to the Agreement, a contract on granting of a right to use the territory of the Port for the construction works of LNG terminal infrastructure was concluded.