Concession contracts in the EU

KEY POINTS

• Concessions are contracts for payment whereby one or more contracting authorities or contracting entities entrusts works or the provision and management of services to one or more companies:
  • contracting authorities (as defined in Article 6) are national, regional or local authorities or bodies governed by public law;
  • contracting entities (as defined in Article 7) are authorities or operators in the utilities sector exercising one of the relevant activities and awarding a concession for carrying them out.
• The award of the works or services consists in the right to exploit them or that right together with payment. The right to exploit implies the transfer to the concession holder of the economic operating risk involving, in particular, the possibility that the concession holder will not recover the investments made.
• The rules on the award of concessions aim to set out a clear legal approach. They also aim to guarantee effective access to the concessions market for all European businesses, including small and medium-sized enterprises, and provide them with possibilities for investment in major public services in the future.
• This directive is part of a package of legal acts designed to modernise public procurement rules across the EU. The reforms will allow public authorities to optimise their use of public procurement. Public contracts that are covered by the EU directives are valued at around €420 billion, making them a key driver of the EU economy.
• As set out in Article 8, the directive applies to concessions worth €5,538,000 or more This threshold is revised every 2 years, as set out in Article 9.