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The granting of property or property by a government may be a lease agreement for a specific purpose, in exchange for services or a specific use, a right to performance and to the benefit of a particular activity. A concession may include the right to use certain existing infrastructure necessary to run a business (for example. B a water system in a city); in some cases, such as mining. B, it can only be a transfer of exclusive or non-exclusive reliefs. The concession should not be confused as part of a concession contract with a lease agreement. A “leasing” is an interest in a real estate, while a “concession” is a license to operate on the property, but has no intrinsic property rights. Under the terms of the sector`s right, the concession can either authorize the authority to retain or retain ownership of the assets, or by passing them on to the concessionaire and returning the property to an authority at the end of the concession, or the authority and the dealer who owns it. However, the implementation of MDBs also has several drawbacks. Often, the format and language of WABs are copied without proper consideration of the specific implications of each project. The structure of the WAB is rigid.

Concession contracts are often complex and long-term and it is not possible to anticipate all the risks that may arise during the execution and operation of the project being implemented. In these circumstances, the lack of a flexible approach undermines the interests of private parties. Concession agreements are very different from other more common trade agreements on the provision of goods and services. Unlike other commercial contacts generally related to private party asset and real estate transactions, concession agreements are intended for public goods and services and are intended to provide essential facilities and services. Apart from that, concession contracts are long-term contracts that usually involve high-quality transactions. Within the European Union, the granting of concessions by public bodies is governed by a regulation. Work concessions have been subject to public procurement rules for some time, as the European Parliament and European Council`s 2004/18/EC Directive on Public Works Concession Contracts is applied and cross-border concessions on services are governed by the principles of the Treaty on the Functioning of the European Union. However, on February 26, 2014, the European Parliament and the European Council have adopted a new 2014/23/EU directive on the awarding of concession contracts[4], which required EU Member States to implement national legislation for the awarding of concession contracts of more than EUR 5,186,000, which was awarded on or after 18 April 2016.

The more attractive and profitable a concession is, the more likely it is that a government will offer tax breaks and other incentives. Public services such as water supply can be operated in concessions. In the case of a public service concession, a private company enters into an agreement with the government on the exclusive right to invest, maintain and carry out activities in a public utility (for example. B a privatization of water) for a number of years. Other forms of contracts between public and private bodies, namely the lease and the management contract (in the water sector, often referred to as farming), are closely linked, but differ from a concession with respect to the operator`s rights and remuneration. A lease gives a company the right to operate and maintain a public service, but investments remain the responsibility of the public. Under a management contract, the operator collects the revenue only on behalf of the government and in turn receives an agreed fee. In India, the Supreme Court adopted the doctrine of essential facilities for concession agreements in the case of VST Industries Limited v.