Concessieovereenkomst
Concession Agreement
A concession agreement is a contract whereby a public authority grants a private party the right to operate a public service or infrastructure, with the concessionaire bearing the economic risk.
A concession agreement arises when a contracting authority transfers the right to operate works or services to a private party, which is typically entitled to collect user charges in return. In the Netherlands, such agreements are governed by the Public Procurement Act 2012 and are distinguished from a standard public contract by the fact that the concessionaire bears the demand risk.
This framework is relevant to infrastructure projects such as toll roads, airports, ports and public transport, as it enables private investment without direct payment by the government. The government nevertheless retains oversight of quality and tariffs through contractual provisions.
In practice, a concession agreement often gives rise to a public-private partnership in which the concessionaire is responsible for design, construction, financing and long-term operation, typically for a period of 15 to 30 years.
“The province concluded a concession agreement with an operator for the construction and operation of a new toll motorway.”
Related terms
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