Build Own Transfer Agreement Template for Malaysia

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Key Requirements PROMPT example:

Build Own Transfer Agreement

"I need a Build Own Transfer Agreement for a solar power plant project in Selangor, Malaysia, with construction commencing in March 2025 and a 20-year operational period before transfer to the local authority. The project value is approximately MYR 500 million."

Document background
The Build Own Transfer Agreement is a crucial document in Malaysia's infrastructure development landscape, used when a government authority wishes to engage private sector expertise and financing for major infrastructure projects. This agreement type is particularly relevant under Malaysian law, which has specific provisions for public-private partnerships and infrastructure development. The document comprehensively covers the entire project lifecycle, from initial construction through operational period to final transfer, incorporating necessary regulatory approvals, technical specifications, financial arrangements, and risk allocation mechanisms. It is structured to comply with Malaysian legal requirements while protecting the interests of both public and private parties throughout the project duration.
Suggested Sections

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

2. Background: Context of the project, objectives, and basis for the agreement

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

4. Project Scope and Implementation: Detailed description of the project and implementation requirements

5. Construction Obligations: Rights and obligations during the construction phase, including timelines and standards

6. Operation and Maintenance: Requirements for operation and maintenance during the ownership period

7. Transfer Provisions: Terms and conditions for the transfer of assets back to the authority

8. Financial Provisions: Financial terms, payment mechanisms, and revenue arrangements

9. Performance Security: Requirements for performance bonds and other security arrangements

10. Risk Allocation: Distribution of risks between parties and risk management procedures

11. Representations and Warranties: Standard representations and warranties from both parties

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

13. Default and Termination: Events of default, termination rights, and consequences

14. Dispute Resolution: Procedures for resolving disputes between parties

15. Governing Law: Specification of Malaysian law as governing law and jurisdiction

Optional Sections

1. Environmental Compliance: Specific environmental obligations and compliance requirements - include if project has significant environmental impact

2. Local Community Obligations: Provisions regarding local community engagement and benefits - include for projects affecting local communities

3. Technology Transfer: Requirements for technology transfer to local entities - include if specified by authority

4. Refinancing Provisions: Terms for project refinancing - include for large-scale projects with complex financing

5. Step-in Rights: Lenders' step-in rights and procedures - include when project involves significant external financing

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

Suggested Schedules

1. Technical Specifications: Detailed technical requirements and specifications for the project

2. Construction Schedule: Timeline and milestones for construction phase

3. Performance Standards: Operational performance standards and metrics

4. Financial Model: Project financial projections and assumptions

5. Land Details: Details of project site and land rights

6. Required Consents: List of required permits, licenses, and approvals

7. Transfer Requirements: Detailed requirements for asset transfer including condition standards

8. Form of Performance Security: Template for performance bonds and guarantees

9. Testing and Commissioning Procedures: Procedures for testing and accepting completed works

10. Operating Manual: Required operating procedures and maintenance standards

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

Relevant legal definitions
Clauses
Relevant Industries

Infrastructure Development

Power Generation

Transportation

Water Treatment

Waste Management

Healthcare Infrastructure

Educational Facilities

Industrial Parks

Telecommunications

Urban Development

Relevant Teams

Legal

Finance

Operations

Construction

Risk Management

Compliance

Technical

Commercial

Business Development

Project Management

Environmental

Public Relations

Government Relations

Relevant Roles

Project Director

Legal Counsel

Chief Financial Officer

Construction Manager

Operations Director

Risk Manager

Compliance Officer

Technical Director

Commercial Manager

Contract Manager

Business Development Director

Infrastructure Development Manager

Public-Private Partnership Specialist

Environmental Compliance Manager

Project Finance Manager

Industries
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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