Description
This policy paper should be read in conjunction with the ICOMIA Marinas Group (IMG) recommendation on Marina Lease Tenders (June,2018).
Concessions/leases are often for terms greater than 25 years and in many cases allow for renewal, with the existing concessionaire/lessee for a new term, often with some capital investment requirement. In other cases, renewal at the end of the term may not be guaranteed or defined. Where available, the renewal of concessions/leases is typically informal and industry operates with no certainty. Without long term concessions/leases, a lack of certainty has created difficulties for the industry to attract and retain investment capital. There are sound commercial and public policy justifications for providing a formal basis for the renewal of marina concessions/leases within existing concessionaires/lessees.
To ensure continued investment by the concession holder/lessee over the lease period which results in maintaining modernisation, upgrading, attractiveness and ongoing safe operations, the initial lease terms should be a minimum of 40 years with the ability to extend the lease based on a
formula in the lease tied to capital expenditure and improvements. Criteria should be set forth within standard concessions/leases for the assessment of the performance of the lessee during the existing lease as well as renewal term in the form of benchmarks for capital investments to ensure the objective of ongoing improvement of infrastructure, operations and public desires are delivered.
