What is a concession contract?
Public authorities use concession contracts to engage private firms to supply services or to perform works. Examples include building roads, bridges, sports arenas or supplying energy or waste disposal services.
The key feature of concession contracts is that the private firm must bear a substantial part of the economic risk stemming from executing the contracted works or services. The firm does not usually acquire property rights to the infrastructure object that it builds or operates, but it may receive revenue from it and even an additional annual payment from the public authority.