������Ƶ

A Concession Agreement lets private companies operate public assets or provide public services under government oversight. In Germany, these contracts are especially common for infrastructure projects like toll roads, airports, and municipal utilities, falling under the framework of Public-Private Partnerships (ÖPP).

Under German law, these agreements detail how the private partner can use public resources, set service quality standards, and specify payment terms - often through user fees or government payments. The contracts typically run for 20-30 years and must comply with EU procurement rules and the German Budget Law (Haushaltsrecht), ensuring public interest protection while allowing private sector efficiency.

Consider a Concession Agreement when your public authority needs private sector expertise to operate major infrastructure or deliver public services. These agreements work especially well for German municipalities managing complex projects like water treatment facilities, waste management systems, or public transport networks where specialized operational knowledge is crucial.

The timing is right when the public sector lacks either the technical capacity or financial resources to efficiently manage the service alone. Under German procurement law (Vergaberecht), these agreements help distribute risks effectively while maintaining public oversight. They're particularly valuable for long-term projects requiring significant private investment while keeping essential services under government control.

• BOT Concessions: Used for major infrastructure like highways or airports, where private partners Build, Operate, and Transfer the asset back to the government after 20-30 years
• Service Concessions: Common in municipal services like waste management or public transport, focusing on operational management rather than construction
• Revenue-Share Concessions: Popular for commercial facilities like shopping areas in train stations or airports, where private operators pay a percentage of earnings
• Utility Concessions: Specific to water, energy, or telecommunications infrastructure, with strict regulatory oversight under German utilities law

• Public Authorities: Municipal governments, state agencies, or federal bodies who grant concession rights and maintain oversight of public assets or services
• Private Operators: Companies with technical expertise who manage the conceded assets, often infrastructure specialists or utility service providers
• Legal Counsel: Specialized public procurement lawyers who draft and negotiate Concession Agreements, ensuring compliance with German and EU regulations
• Financial Institutions: Banks and investors who provide project financing, requiring specific terms in the agreement to protect their interests
• Technical Consultants: Engineers and industry experts who help define performance standards and technical specifications

• Project Scope: Define the exact services or assets covered, performance standards, and duration of the concession
• Financial Model: Calculate revenue projections, payment mechanisms, and risk allocation between public and private partners
• Legal Framework: Check compliance with German procurement law, EU directives, and relevant sector-specific regulations
• Technical Requirements: Document operational specifications, maintenance obligations, and quality standards
• Stakeholder Input: Gather requirements from all parties, including public authority objectives and private operator capabilities
• Documentation: Collect permits, licenses, and existing contracts affecting the concession area

• Parties and Purpose: Clear identification of public authority and private operator, plus detailed project objectives
• Scope of Rights: Precise description of granted concession rights, permitted activities, and territorial limits
• Duration and Terms: Concession period, renewal conditions, and early termination provisions
• Performance Standards: Specific service levels, quality requirements, and monitoring mechanisms
• Financial Terms: Payment structures, revenue sharing, and adjustment mechanisms compliant with German budget law
• Risk Allocation: Clear distribution of operational, financial, and legal risks between parties
• Handover Provisions: Asset transfer conditions and end-of-term obligations

A Concession Agreement differs significantly from a Construction Agreement, though they're often confused in infrastructure projects. While both deal with major projects, their core purposes and legal frameworks are distinct under German law.

• Duration and Scope: Concession Agreements typically run 20-30 years and cover both construction and operation, while Construction Agreements focus solely on the building phase and end upon completion
• Risk Distribution: Concession Agreements transfer operational and revenue risks to the private partner, whereas Construction Agreements mainly address construction-related risks
• Payment Structure: Concessions often involve user fees or performance-based payments over decades, while Construction Agreements use fixed prices or cost-plus arrangements
• Regulatory Framework: Concessions fall under public procurement law and PPP regulations, while Construction Agreements primarily follow private construction law (BGB and VOB)