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How to Autofill Concession Agreement Template

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A concession or concession agreement is a grant of rights, land or property by a government, local authority, corporation, individual or other legal entity. Public services such as water supply may be operated as a concession. In the case of a public service concession, a private company enters into an agreement with the government to have the exclusive right to operate, maintain and carry out investment in a public utility for a given number of years. Other forms of contracts between public and private entities, namely lease contract and management contract, are closely related but differ from a concession in the rights of the operator and its remuneration. A lease gives a company the right to operate and maintain a public utility, but investment remains the responsibility of the public. Under a management contract the operator will collect the revenue only on behalf of the government and will in turn be paid an agreed fee. A grant of land or property by a government may be in return

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What is the difference between concession and lease?

First, a concession agreement gives limited rights to use the property for any specified use, whereas a lease agreement creates an interest in the property to the lessor. Second, a concession agreement doesnt create any inherent property rights, whereas a lease creates interest on the owners property.

What are examples of concession agreement?

For example, a concession agreement exists between the governments of France and the U.K. and two private companies regarding the Channel Tunnel. The British Channel Tunnel Group Limited and the French France-Manche S.A. operate the Channel Tunnel, often referred to as the Chunnel under this agreement.

What is meant by concession agreement?

Key Takeaways. A concession agreement is a contract that gives a company the right to operate a specific business within a governments jurisdiction or on another firms property, subject to particular terms.

What is a concession agreement in oil and gas?

Petroleum Concession Agreement or PCA means an agreement pursuant to which the GoP grants to the parties thereto an interest in a Petroleum concession, which interest is subject to the rights, obligations, and liabilities imposed by the applicable petroleum laws of Pakistan, including the enjoyment of the exclusive

What are the disadvantages of concession?

Cons: Highly complex to implement and administer. May have underlying fiscal costs to the government. Negotiation between parties and finally making a project deal may require long time.

What are the benefits of concession agreements?

The major advantage of a concession is that it allows certain public assets, for which private ownership is economically inefficient and politically not possible, to be maintained and operated efficiently by private players.

How does a concession agreement work?

Under a concession agreement, the government grants a private entitythe concessionairethe exclusive right to build an asset and to operate and maintain it for the agreed term of the concession.

What is the difference between concession agreement and lease?

First, a concession agreement gives limited rights to use the property for any specified use, whereas a lease agreement creates an interest in the property to the lessor. Second, a concession agreement doesnt create any inherent property rights, whereas a lease creates interest on the owners property.

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Autofill Concession Agreement Template