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A Concession Agreement lets a private company operate and manage public assets or services under Belgian law. Think of it like a long-term lease where a government body grants a business the right to run something like a toll road, airport, or utility service - but with strict rules about quality, pricing, and public access.

These agreements follow Belgium's Public Procurement Act and typically run for 15 to 30 years. The private operator makes money from user fees while taking on maintenance costs and operational risks. The government keeps ownership and oversight rights, ensuring the service meets public needs through specific performance standards and regular monitoring.

Use a Concession Agreement when your public authority needs to delegate major infrastructure or service operations to private partners while maintaining public oversight. This works especially well for Belgian municipalities and regions managing projects like parking facilities, water treatment plants, or renewable energy installations where specialized private expertise can improve efficiency.

The timing is right when your public service needs significant investment or operational upgrades, but direct government management isn't the best option. Consider this route particularly for projects requiring technical expertise, major capital investment, or when seeking to transfer operational risks while keeping essential public services accessible and affordable.

• BOT Concessions: Private companies build, operate, and transfer infrastructure back to Belgian authorities after 20-30 years - common for major transport projects
• Service Concessions: Shorter agreements focused on operating existing public services like waste management or parking facilities
• Mixed Concessions: Combine infrastructure and service elements, often used for sports complexes or cultural facilities
• Utility Concessions: Long-term agreements for managing water, energy, or telecommunications networks with strict public service obligations

• Public Authorities: Regional or municipal governments who grant concession rights and monitor compliance with public service obligations
• Private Operators: Companies or consortiums who invest capital, manage operations, and bear commercial risks under the Concession Agreement
• Legal Advisors: Specialized public procurement lawyers who structure agreements and ensure compliance with Belgian concession laws
• Technical Experts: Engineers and industry specialists who define performance standards and operational requirements
• Financial Institutions: Banks and investors who provide project financing and require specific contractual safeguards

• Project Scope: Define the exact services or infrastructure covered, duration, and performance standards expected
• Financial Details: Calculate investment requirements, revenue projections, and fee structures for public users
• Risk Assessment: Map out operational, financial, and legal risks to be allocated between parties
• Public Interest: Document service quality standards, pricing limits, and accessibility requirements
• Compliance Check: Review Belgian public procurement laws and sector-specific regulations
• Monitoring Plan: Establish clear KPIs, reporting requirements, and oversight mechanisms

• Parties and Authority: Full legal names of public grantor and private concessionaire, plus proof of authority to contract
• Scope Definition: Detailed description of services, infrastructure, and operational boundaries
• Duration Terms: Concession period, extension options, and termination conditions
• Financial Framework: Payment mechanisms, tariff structures, and revenue sharing arrangements
• Performance Standards: Service quality requirements, KPIs, and monitoring procedures
• Risk Allocation: Clear distribution of operational, financial, and legal responsibilities
• Public Service Obligations: Accessibility requirements and user protection measures

Concession Agreements differ significantly from Agency Agreements in Belgian law, though both involve one party acting on behalf of another. Let's explore their key differences to help you choose the right agreement for your situation.

• Control and Ownership: Concession Agreements transfer operational control while keeping public ownership, whereas Agency Agreement only delegates specific tasks without transferring control
• Duration and Investment: Concessions typically run 15-30 years and require substantial capital investment from the operator, while Agency Agreements are usually shorter-term and involve minimal capital commitment
• Risk Allocation: Concessionaires take on significant operational and financial risks, whereas agents typically bear minimal risk and act on the principal's behalf
• Revenue Model: Concessionaires earn from end-users and bear profit/loss responsibility, while agents usually receive commissions or fixed fees from their principal