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A Concession Agreement lets private companies operate public assets or provide public services under Danish government oversight. These contracts are common in infrastructure projects like toll roads, airports, or renewable energy facilities, where the government grants a company the right to build and run the asset for a set period.

Under Danish law, these agreements carefully balance public interest with commercial viability. The private operator typically makes money from user fees while following strict performance standards and pricing rules. When the agreement ends - usually after 20-30 years - the asset returns to public ownership, making these deals different from regular commercial leases or privatization.

Use a Concession Agreement when your public authority needs private expertise to develop and operate major infrastructure projects. This legal tool works perfectly for complex undertakings like municipal waste management systems, harbor facilities, or renewable energy plants where Danish municipalities lack the resources or technical know-how to manage operations directly.

These agreements become essential when dealing with projects requiring significant upfront investment and specialized operational skills. The Danish government often uses them to tap into private sector efficiency while maintaining public oversight. They're particularly valuable for green energy initiatives, where private companies can handle technical operations while local authorities ensure public benefit and environmental compliance.

• BOT Concessions: Private partners build, operate, and transfer infrastructure back to Danish authorities after 20-30 years. Common for major transport projects.
• Service Concessions: Focus on operating existing facilities like municipal sports centers or waste management plants.
• Revenue-Share Agreements: Used for commercial developments where private operators share profits with public authorities, popular in harbor development projects.
• Green Energy Concessions: Specifically structured for renewable energy projects, including special environmental compliance terms and technology requirements.

• Municipal Authorities: Initiate and oversee Concession Agreements for local infrastructure projects, setting performance standards and monitoring compliance.
• Private Operators: Usually large corporations or consortiums who invest capital, provide expertise, and manage the concession's day-to-day operations.
• Legal Advisors: Draft and review agreements, ensuring compliance with Danish public procurement law and EU regulations.
• Technical Consultants: Help set operational requirements and performance metrics for complex infrastructure projects.
• End Users: Danish citizens who use the services or facilities, often paying user fees directly to the private operator.

• Project Scope: Define the infrastructure or service clearly, including technical specifications and quality standards.
• Financial Model: Calculate expected revenues, investment requirements, and fee structures for the concession period.
• Risk Assessment: Map out operational, financial, and legal risks between public and private parties.
• Performance Metrics: Establish clear KPIs and monitoring mechanisms for service quality.
• Legal Framework: Check Danish public procurement rules and EU regulations affecting your specific sector.
• Stakeholder Input: Gather requirements from technical experts, end-users, and local authorities before finalizing terms.

• Parties and Roles: Clear identification of public authority and private operator, including their legal capacities.
• Project Definition: Detailed scope of infrastructure or service, including technical specifications and quality standards.
• Duration Terms: Concession period, extension options, and transfer conditions.
• Financial Structure: Revenue mechanisms, fee adjustments, and profit-sharing arrangements.
• Performance Standards: Specific KPIs, monitoring procedures, and penalty mechanisms.
• Risk Allocation: Clear distribution of operational, financial, and legal risks between parties.
• Termination Rights: Grounds for early termination and compensation mechanisms under Danish law.

A Concession Agreement differs significantly from an Asset Purchase Agreement, though both involve valuable infrastructure or business assets. The key distinctions lie in ownership transfer, duration, and operational control.

• Ownership Structure: Concession Agreements maintain public ownership while temporarily granting operational rights. Asset Purchase Agreements transfer full ownership permanently to the buyer.
• Duration and Control: Concessions have fixed terms (usually 20-30 years) with ongoing public oversight. Asset purchases are permanent, giving buyers complete control.
• Revenue Model: Concessions typically involve user fees or service charges shared between parties. Asset purchases require one-time payment for complete ownership.
• Regulatory Framework: Concessions must comply with Danish public procurement laws and maintain public interest. Asset purchases follow standard commercial law with fewer public obligations.