What is the Concession Agreement
The concession agreement is a contract between the company and government, which gives the company the right to conduct specific business within the jurisdiction of the state, subject to certain conditions. The concession agreement may also refer to the agreement between the owner of the premises and the owners of concessions and concessionaires that provide the latest exclusive rights to operate a particular business enterprise under certain conditions.
Breaking down the ‘concession agreement’
Also referred to as concession contracts, concession agreements cover a variety of industries and sizes, from the concessions to develop oil fields is estimated at hundreds of millions of small food and beverage concession in a movie theater. The terms of the concession agreement also depends on its desirability. For example, a popular concession in a sports stadium may not offer much for the concessionaire from the point of view of incentives. On the other hand, the government is considering the possibility of attracting mining companies in poor areas have to offer significant incentives, such as tax breaks and reduced royalty rates. Regardless of the type of concession, the concessionaire usually has to pay the party that gives her the concession of the current payments specified in the contract.
The concession Agreement and the railway
The total area of the concession agreements between governments and private enterprises include the right to use certain pieces of infrastructure, such as Railways. Rights may be granted to individual businesses, resulting in exclusive rights, or for multiple organizations. Under the agreement, the government may have expectations about the repair and construction of Railways, as well as performance standards.
For example, there is a concession agreement between the governments of France and the United Kingdom and private companies tunnel under the English channel and France Manche S. A. in respect of operations through the tunnel under the English channel. This tunnel connects the two countries under the English channel.
Total Retail Concessionaires
Sellers in different places officially operating under concession agreements. This may include restaurants and retail stores located in major airports, suppliers, government agencies, or the sale of food and beverages stands in state parks. The concession agreement for these activities to specify the length of the contract, defining the term according to which the concessionaire may operate and any charges that will be assessed by the property owner. Payments to the property owner may include rent for the venue, as a percentage of revenue or a combination of the two. Any additional expectations may also be included, for example, find out which party is responsible for certain services, to formalize the terms requested.