Concesii

Concesii is a legal instrument by which a public authority grants a private party the right to exploit a public asset or to provide a public service for a defined period, in exchange for investment, operation, and payment of fees. In a concession, the public entity typically retains ownership of the asset, while the concessionaire obtains exclusive or preferential rights to use the asset or deliver the service and bears substantial risks, including capital expenditure and performance risk. At the end of the concession term, the asset and associated rights usually revert to the public authority, unless renewal is agreed.

Concesii are commonly used for infrastructure and utilities, such as roads and toll roads, ports and airports, water and wastewater systems, energy facilities, and sometimes the extraction of natural resources under a government license. They can take the form of asset concessions (where the private partner builds and/or operates the asset) or service concessions (where the private partner provides a service and may recover costs through user fees).

The procurement and administration of concessions are governed by national laws and, in many jurisdictions, by EU public procurement rules. Contracts are typically awarded through competitive bidding and include terms on investment plans, service standards, tariffs, and performance monitoring. Concesii are distinct from leases in that the private partner generally assumes greater investment and performance risk and the public authority retains ownership and regulatory oversight.

Pros and cons are debated: concessions can mobilize private capital and expertise and improve efficiency, but may raise long-term costs and require robust regulation and oversight to protect public interests.