Transform your daily workflows and Modify Concession Agreement

Aug 6th, 2022
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How to Modify Concession Agreement

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hi everyone welcome to yet another financial modeling tutorial by alfonso pulido this time we are going to talk about concession agreements accounting better known as e3 public concessions are a wide spread subject of project finance mobiling a concession occurs when a public authority assigns the use of a public domain asset or service in return of a long-term investment to develop it on the rift road the right to use a public domain asset or service acquires the form of either a financial asset or an intangible asset concurrently revenues have to be recognized alongside the usage of the asset following es18 in this video we will build a financial asset and will recognize revenues accordingly to many accounting standards well its easier than it seems lets get into it okay so lets get started uh well need a couple of parameters the margin on opex and the marginal ill explain in a while what these two mean then just a period a little bit of formatting here thats it okay we

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Concession Agreements Standard Concession (or Franchise) Agreement. Concessions Providing for Shared Track Use. Concessions Granting Haulage Rights.
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.
Explanation: This principle relates to the fairness, transparency and accessibility of the rules and procedures governing the selection of concessionaires, awarding and further implementation of a concession.
A concession agreement is a contract between two parties where one party grants the other the rights to operate a particular business under certain conditions. In a concession agreement, land, property and other rights are negotiated between the two partied involved in the contract.
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.
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.
A lease is an interest in a property whereas a concession is a grant of a license to operate on the property but doesnt carry any inherent property rights. A lease is a grant of possession over a definite description of the land or other property in return of a definite price and payment arrangement.
What is a concession? It is a kind of partnership between the public sector and a (usually) private company that has shown its added value in a specific area, for example developing infrastructure.

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