All about the concession

All about the concession

    A concession is a right to operate on a public interest object or service provided by a grantor, which may be the state or municipality of a concessionaire. A concession is granted on the basis of a written contract for a fixed period of time. Your concessionaire is entrusted with the obligation to maintain and operate a site that is state or municipal, or to provide a service of public importance. In return, you have the right to collect income from the activity assigned to you. You should be aware that once you are a concessionaire you are at your own risk (for example, in case of potential losses). A construction or service concession may be granted for a maximum of 35 years and a concession for use for a period of 25 years. There are 3 types of concessions according to the subject: for construction, for service and for extraction. The subject of concession are objects and properties and according to their property, the concession has the possibility to be state, municipal and joint. You, as a concessionaire, have the right to receive revenue from third parties or users of services. In some cases, additional compensation from the grantor may also be provided - for example, the cost of building, operating and maintaining the site. When choosing a concessionaire, it means "economic balance" - the idea is to win the hedge as a concessionaire, the concessionaire. This economic balance, which has passed into the concession agreement, must be complied with by both parties. If, for a reason that is not up to you, you are unable to keep the economic balance and start losing money, you have the opportunity to request a modification of the concession agreement. This change must be such as to restore the economic balance.