Negative Tipping Fee Clause Samples
A Negative Tipping Fee clause defines a situation where a waste facility pays the waste generator or hauler to accept certain types of waste, rather than charging them a fee. In practice, this arrangement typically applies when the waste has value for the facility, such as when it can be used as fuel or raw material in a recycling or energy recovery process. The clause ensures that the financial benefit of delivering valuable waste is clearly allocated, incentivizing the delivery of such materials and clarifying payment responsibilities between the parties.
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Negative Tipping Fee. The Concessionaire agrees and undertakes to pay to the Concessioning Authority fee per ton of MSW (“Negative Tipping Fee”) for the right and concession granted for:
(i) Processing and/or Disposal of MSW received from MSW Supply Area (“Tipping Fee – P&D”) after COD-P&D. The Tipping Fee escalation shall be as per the Tipping Fee Index Annexure 13 of Concession Agreement.
Negative Tipping Fee. The Concessionaire agrees and undertakes to pay to the Concessioning Authority fee per ton of MSW (“Negative Tipping Fee”) for the right and concession granted for Processing and Disposal of MSW received at Receipt Point in Processing & Disposal Facilities Site from MSW Supply Area (“Tipping Fee – P&D”) after COD- P&D It is to be noted that Tipping Fee-P&D can be either positive or negative. Mechanism of Payment during the Concession Period- The Concessioning Authority (in case of Positive Tipping Fee) or the Concessionaire (in case of Negative Tipping Fee) shall, within thirty (30) days from the date of receipt of the Monthly Fee Statement shall, in accordance with procedure laid out in Annexure 13,
a.) Pay to the Concessionaire (in case of Positive Tipping Fee) or the Concessioning Authority (in case of Negative Tipping Fee), an amount equal to 98.5 % of the total amounts payable as monthly payment – P&D in accordance with Article 7.3 as stated in such Monthly Fee Statement.
b.) The Concessioning Authority (in case of Positive Tipping Fee) or the Concessionaire (in case of Negative Tipping Fee) shall credit the balance amounts, which are equal to 1.5 % of the monthly payment – P&D, in a separate bank account in the name and style of “Post Closure Performance Account” maintained by the Concessioning Authority for meeting the expenses related to Post Closure Activities.