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How to Protect Concession Agreement Template

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A concession or concession agreement involves granting rights, land, or property by a government or legal entity, often for public services like water supply. In a public service concession, a private company gains exclusive rights to operate, maintain, and invest in a public utility for a specified period. This differs from lease and management contracts. A lease allows a company to operate a utility while the public retains investment responsibility. In a management contract, the operator collects revenue on behalf of the government for a fee. Additionally, a grant of land or property may involve reciprocal agreements.

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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 concession agreement between 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 are the different types of concession agreements?

There are different types of concession contracts, including: ex-leasing, franchise, build- operate-transfer (BOT) etc. Private finance initiatives (PFIs) may also be considered similar to concessions.

What is the difference between a PPP and a concession?

The authors argue that PPP is the general term for a cooperative relationship between a government and private investors, that a concession is public-private cooperation in which the users pay the fees and that BT (build-transfer) existed in large numbers in the past involves a necessary government procurement of

What is a concession agreement PPP?

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 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.

What is concessionaire 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.

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