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How to Fill Out Concession Agreement

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the term concession agreement is used in two slightly different ways in the business world both refer to a type of negotiated contract which gives a company the right to do business with some specific requirements in one sense it refers to a contract between a foreign company and a government in which the company signs a concession agreement so that it can do business in that governments country in a second sense this type of agreement is one which grants the concessionaire the exclusive right to do business in a particular area or venue in exchange for some carefully negotiated terms when people talk about contracts with foreign companies a concession agreement is worked out between the company and the government of the nation where it wishes to do business the government may want to incentivize the company by lowering taxes relaxing restrictions or providing other incentives in cases where the government is not as enthusiastic the company may need to make some concessions such as c

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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 is a concession arrangement?

A service concession arrangement is an arrangement whereby a government or other public sector body contracts with a private operator to develop, operate and maintain an infrastructure asset such as a road, bridge, tunnel, airport, energy distribution network, prison or hospital.

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

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 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 a concession agreement in PPP?

Concessionaire is granted the right to use all assets conferred, including rolling stock. Concessionaire is obliged to operate the railway system, maintain the railway infrastructure and make the investments specified in the concession contract. Asset ownership remains with the conceding authority.

What are examples of concession agreements?

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 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.

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