Replace Date in the Concession Agreement and eSign it in minutes

Aug 6th, 2022
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How to Replace Date in the 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 ingly 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 capex ill explain in a while what these two mean then just a period a little bit of formatting here thats it okay we are gon

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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.
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.
Some of the essential clauses in a concession agreement are as follows: Definition clause. Scope of the project. Grant of concession. Concession period. Conditions precedent. Damages for delay by the authority. General obligation of the concession holder. General obligation of the authority.
During the concession term, ownership of the asset concerned will usually remain with the government/public body that is granting the concession and, at the end of the concession term, all rights that have been granted to the concessionaire will revert to the government/public body.
Concession period is a key decision variable in the arrangement of a PPP contract. The length of concession period is mainly related to the recovery of investment and return required by the concessionaires.
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.
There are restrictions on the duration of a concession contract. It cannot be of unlimited duration and if the duration exceeds 5 years the maximum duration must not exceed the time that the contractor could reasonably be expected to take to recoup the investments made.
Concession Period/s means the period/s over which Concession/s will be granted to the Winning Bidder/s, over a period of thirty (30) years, as per provisions to be defined in the Concession Agreements.

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