Long Term Concession Agreements

A concession or concession contract is the granting of rights, land or property by a government, local authority, enterprise, natural person or other legal person. [1] Within the European Union, the award of concessions by public bodies is subject to regulation. Construction concessions have been subject to procurement rules for some time, as Directive 2004/18/EC of the European Parliament and of the European Council on public procurement applies to construction concessions, and cross-border service concessions are governed by the principles of the Treaty on the Functioning of the European Union. However, the European Parliament and the European Council adopted, on 26 February 2014, the Commission adopted a new Directive 2014/23/EU on the award of concession contracts[4], which obliged EU Member States to adopt national legislation for the award of concession contracts of EUR 5,186 000 awarded on or after 18 April 2016. Location: wharves, wharves or wharves, buildings and other infrastructure and superstructures leased or granted to the operator under this Agreement. Box 24 contains a brief list of important issues that are normally addressed in a concession contract and related documents, while Annex I contains a comprehensive list of potential provisions relating to concession and BOT agreements. In many concession contracts, the port operation establishes a list of activities that can be carried out on the site. These activities should be interpreted as far as possible in order to allow the operator maximum flexibility in the development of activities and revenue generation (see Box 29). There is no generally accepted standard for a concession fee. This fee is generally set at the sum of a fixed fee for the use of areas managed by the Authority and a variable fee in the form of a debit charge for the right to provide cargo handling services. The amount of the fee depends on local conditions.

The fixed share may represent the infrastructure costs (and, where applicable, construction costs) of the terminal, including financing costs. The structure and amount of the concession fee is an essential element of the analysis by project lenders. The variable fee is often a function of the port`s position in the market as a whole (i.e. what the market can bear) and other considerations, such as the creation of a fund for surplus dockers. An important issue is the indexation of the concession fee (TEU fee). These fees are usually expressed in US dollars, euros or another hard currency. Given that the duration of the concession may exceed 30 years, it is obvious that there is a serious risk of inflation. A concession agreement should therefore include a specific indexation clause.

Indexation should apply to fixed and variable charges. The simplest option is to regularly adjust the fee on the basis of a basket of currencies, for example. B a combination of the United States. . . .

This entry was posted in Geen categorie. Bookmark the permalink.