Tennessee Concession Agreement
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FAQ
Advantages and Disadvantages of Granting a Concession A concession permits an operator to have greater freedom and flexibility to obtain maximum operating effectiveness (using its own management, financial, and technical abilities and knowledge) and guarantee the success of the project.
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.
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. May require close regulatory oversight.
Concession agreements often involve contracts between the nongovernmental owner of a facility and a concession owner, or concessionaire. The agreement grants the concessionaire exclusive rights to operate their business in the facility for a stated time and under specified conditions.
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.
Concessions are often viewed as a substitute for privatisation when the latter is not feasible for political or legal reasons. An accepted definition of a concession is: a grant to a private firm of the right to operate a defined infrastructure service and to receive revenues deriving from it.
The concession process typically involves the following steps: Development of technical, economic and financial analyses documents for the Data Room. Pre-qualification of bidders. Request for Proposal invitations to pre-qualified bidders.
A concession agreement is a contract that gives a company the right to operate a specific business within a government's jurisdiction or on another firm's property, subject to particular terms.
