What is an Affermage contract?
Glossary -> A. Affermage contracts are generally public-private sector arrangements under which the private operator is responsible for operating and maintaining the utility but not for financing the investment.
What is a concessionary contract?
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. At their best, concession agreements are a form of outsourcing that allows all parties to benefit from comparative advantage.
What is a concession partnership?
Concession contracts – partnerships between the public sector and a private company. Concession contracts are used by public authorities to deliver services or construct infrastructure. Concessions involve a contractual arrangement between a public authority and an economic operator (the concession holder).
What is a concession agreement PPP?
A concession agreement is an agreement between a Government Authority and a Private entity, through which the Government grants certain rights to the Private entity for a limited period of time. These agreements are common in the development of infrastructural projects under the Public-Private Partnership (PPP) model.
Is a concession a PPP?
In the PPP context, a concession is mostly used to describe a user-pays PPP. O&M contracts for existing assets may come under the definition of PPP where these are performance-based, long-term, and involve significant private investment (sometimes also called performance-based maintenance contracts).
Is PPP a government contract?
A Public-private partnership (PPP) is often defined as a long-term contract between a private party and a government agency for providing a public asset or service, in which the private party bears significant risk and management responsibility (World Bank, 2012).
Is a concession agreement a lease?
A concession agreement is a lease of public property or city right-of-way.
How does concession work?
It works like this: The buyer (or the buyer’s agent) negotiates the concession amount with the seller or the seller’s agent. Concessions don’t give buyers cash back at closing, nor can they be used to cover the buyer’s down payment. They’re strictly intended to reduce what the buyer pays at closing.
What are the types of concession agreement?
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 PPP and concession?
Concessions are contracts where the consideration for the works or services to be carried out consists either solely in the right to exploit the work or service, or in this right together with payment. The acronym PPP refers to Public-Private Partnership. PPPs tend to be complex and long term contracts.
What are the disadvantages of PPP?
PPP disadvantages:
- Infrastructure or services delivered could be more expensive;
- PPP project public sector payments obligations postponed for the later periods can negatively reflect future public sector fiscal indicators;
What does a lease and affermage contract mean?
Leases and affermage contracts are generally public-private sector arrangements under which the private operator is responsible for operating and maintaining the utility but not for financing the investment.
What’s the difference between a contract and a concession?
Concession (contract) Other forms of contracts between public and private entities, namely lease contract and management contract (in the water sector often called by the French term affermage ), are closely related but differ from a concession in the rights of the operator and its remuneration.
When did concession contracts start in the EU?
The award of services concessions with a cross-border interest has been subject to the principles of the Treaty on the Functioning of the European Union. The European Commission had originally included public concession contracts in the Services Directive of 1992, but these were removed from its scope by the European Council.
How does a public service concession work in the UK?
In the case of a public service concession, a private company enters into an agreement with the government to have the exclusive right to operate, maintain and carry out investment in a public utility (such as a water privatisation) for a given number of years.