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How to Hide Arrow to the Concession Agreement

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What does concession agreement in a PPP project refer to an agreement for?

Concessions. In this form of PPP, the Government defines and grants specific rights to an entity (usually a private company) to build and operate a facility for a fixed period of time. The Government may retain the ultimate ownership of the facility and/or right to supply the services.

What are the conditions for concession agreement?

The conditions in a concession agreement can include payment of fees, percentage of revenue made or being liable for the cost of maintaining the facility.

What is concession agreement between a public entity and private entity?

A concession agreement is a license awarded by a government authority to a private entity for the execution and implementation of a public service. The license granted are some rights pertaining to the project granted to the private entity for a limited period which originally resides with the government.

What is the difference between a concession and a contract?

In a public contract, companies receive a fixed amount for carrying out a project or providing a service. With a concession, companies remuneration mainly consists of the authorization to manage and use a work or service, which entails the risk of possible losses in the investments made.

What is the purpose of a concession agreement?

Concession contracts are used by public authorities to deliver services or construct infrastructure. Concessions involve a contractual arrangement between a public authority and an economic operator (the concession holder).

What is an example of a 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 does concession agreement do?

Concession contracts are used by public authorities to deliver services or construct infrastructure. Concessions involve a contractual arrangement between a public authority and an economic operator (the concession holder).

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Hide Arrow to the Concession Agreement