concessionaire

A concessionaire is a person or company that operates an asset or delivers a service under a concession contract with a government, municipality, or private owner. The owner retains ownership of the asset, while the concessionaire gains the exclusive right to operate, maintain, and collect revenues from the asset or service for the term of the contract.

Concessions are common in public infrastructure and services, including toll roads, bridges, airports, rail stations, water and sanitation systems, waste management, and cultural or recreational facilities. They are frequently used within public-private partnership arrangements to leverage private investment and expertise while safeguarding public interest.

Contract terms specify the concessionaire’s obligations, such as capital investments, maintenance and service standards, fee or tariff structures, performance guarantees, and penalties for underperformance. The agreement also defines the duration, conditions for renewal or termination, and mechanisms for monitoring and dispute resolution. Risk allocation is a central feature; the concessionaire typically bears operational and financial risk (revenue, demand, cost overruns) to some degree, while the granting authority retains regulatory control and asset ownership.

Remuneration to the concessionaire may come from user charges, availability payments from the government, or a combination of sources. Distinctions are sometimes drawn between service concessions (where the operator provides a service with user fees) and other forms of lease or management arrangements, but the key element is the long-term grant of rights to operate and monetize an asset or service.

Etymology: from concession, from Latin concessio, meaning the act of granting.