A concession agreement is an agreement recording the details of a partnership between a private entity and a public entity, usually a corporation and a government.
Concession agreements usually involve three parties: (1) a government; (2) a private individual or corporation; and (3) a bank or other institution that is financing the private entity’s work. The private individual or corporation is often referred to as the “contractor” or “concessionaire.” The concessionaire is often a consortium of private companies that all have expertise in the area of development needed by the host country.
Concession agreements differ from a private contracts because a government is involved as a party. It differs from a treaty because a private individual or corporation is involved. In the typical concession agreement, the concessionaire agrees to provide capital, skilled labor, and knowledge in order to develop a foreign country’s natural resources or a specific industry. In addition to the development of the country’s resources, another goal is mutual profit.
We have specialist associated lawyers that have experience on all types of concession agreements and can provide support and expertise to governments, contractors and the financing banks.