Concession Contracts Research Articles

항만당국과 터미널 운영사 간 임대 계약 방식의 성과에 관한 연구

This study examines the performance of port authorities and terminal operators under different types of concession contracts in ports. The port authority signs into a concession contract with the terminal operator to receive fee, and the operator utilizes the terminal to provide loading and unloading services. The demand at the port is affected by the terminal operator's price and service level. This study analyzes the performance of each model using game theory under three different concession schemes: two-part tariff model, revenue-sharing model, and revenue-cost-sharing model. The results show that the revenue-sharing model can improve the profitability of port authorities and terminal operators compared to the two-part tariff model, but it may result in lower service levels at the terminal. On the other hand, the revenue-cost-sharing model can improve both the profit and the service level of each party compared to the two-part tariff model, and can achieve higher performance than the revenue- sharing mode. The significance of this study is that it analyzes the revenue sharing model, which has not been studied much in the past, and considers the service level in analyzing the effect of concession contracts.

A new conception of port governance under climate change

The port governance literature has charted the trend towards devolution of port services to the private sector, also showing how the increasing influence of external private actors such as shipping lines and global terminal operators affects decisions on expansion and service provision, producing a more multifaceted and polycentric kind of port governance. In this paper we extend these notions to cover both mitigation of and adaptation to climate change. A growing body of literature on green ports discusses the various actions that can be taken to limit emissions in the port area, while another body of literature is growing on climate change adaptation measures, including the uncertain risks and rewards. Both mitigation and adaptation actions are partly linked to the commercial decisions of port actors but also partly driven by external actors (e.g. society, government, regulators). The analysis produces an updated conceptualisation of port governance under climate change, based on four stakeholder groups (public policy, commercial actors, indirect actors and international shipping governance) and produces three key conclusions. First, concession contracts and commercial relationships will need to change, with a more integrated vision and approach to sharing future (sometimes undefined or uncosted) costs and benefits between the port authority and commercial partners. Second, diversification of the port business model will see a larger focus on energy production and provision, requiring the more explicit inclusion of external stakeholders, particularly energy companies, in port governance. Third, port governance will see a return to prominence of the public dimension, both in terms of national decarbonisation plans and particularly regarding adaptation to an uncertain and turbulent future. As ports are both commercial activities and national infrastructure, these different identities will need to be united in a joint vision.

Analysis of the Prices of Recycling Byproducts Obtained from Mechanical–Biological Treatment Plants in the Valencian Community (Spain)

Municipal solid waste (MSW) management in Spain, particularly in the Valencian Community, heavily relies on mechanical–biological treatment (MBT) plants followed by landfill disposal. These MBT facilities utilize mechanical processes like shredding, screening, and sorting to segregate recyclables (metals, plastics, paper) from organic material and other nonrecyclables. While public funding supports these plants, private entities manage them through complex, long-term concession contracts. This structure restricts access to crucial data on the sale prices of the byproducts generated during MBT. Publicly available information on relevant company and administration websites is typically absent, hindering transparency surrounding byproduct revenue. This study addresses this gap by analyzing 2012’s available data on revenues obtained from byproduct sales following mechanical treatment at MBT plants within the Valencian Community and comparing them with Spanish national data. This research revealed a significant finding—the statistical distribution of average prices obtained from Ecoembes auctions in the Valencian Community mirrored the corresponding distribution for prices calculated from auctions conducted in other Spanish regions. This suggests a potential uniformity in byproduct pricing across the country. It has also been found that none of the analyzed price distributions exhibited a normal (Gaussian) distribution. The findings also highlight the need for alternative pricing models that move beyond simple averages and account for regional variations and outliers. As actual prices are not available after 2012, this lack of transparency poses a challenge in comprehensively evaluating the economic viability of MBT plants. Furthermore, it raises concerns regarding whether the revenue generated from byproduct sales reflects fair market value. Limited public access to this information can potentially indicate conflicts of interest or inefficiencies within the waste management system.

THE ROLE OF BOOT CONTRACTS IN ACHIEVING ECONOMIC DEVELOPMENT – THE CASE OF ALGERIA

The BOOT (Build-Own-Operate-Transfer) contract is considered one of the innovative mechanisms for managing public facilities due to its importance in implementing investment projects, particularly in construction, operation, and property transfer. Its significance emerged at the beginning of the twentieth century and was further reinforced after the Second World War, amidst the presence of war-stricken economies. Additionally, there was an ideological shift in the role of the state from being a guardian state to an intervening state, which led to the emergence of public law in business affairs. The BOOT contract became one of its cornerstones as countries resorted to international economic contracts. Despite Algeria’s adoption of the BOOT contract as one of the forms of international contracts due to its importance in attracting foreign direct investment and technology transfer, this did not prompt Algerian lawmakers to establish a specific legal framework for it. This is despite the modifications that have affected the specific system, notably Presidential Decree No. 15-247, which is considered one form of concession contracts.

Cetin Dam – stabilising troubled abutment slopes

AbstractThe 420 MW Cetin Dam Project in Turkey was subject to severe setbacks, including substantial geotechnical problems. Since 2011, several concessionaires, contractors and designers were involved. In June 2016, a major failure occurred at a high cut slope of the right bank (RB) valley flank. In 2017, contractor Limak took over the project with a US$ 600 mio concession contract. To secure the contractual agreement for state‐guaranteed energy remuneration, Cetin Dam and hydro hydroelectric power plant (HEPP) had to be operative in 2020. Missing the time target would have implied high economic losses for the concessionaire, and this set‐in‐stone deadline imposed extraordinary pressure for developing fast and reliable solutions. Worryingly, progressing failure became evident at the failed RB cut slope, while rehabilitation works were ongoing. In late December 2017, shortly after a review of geotechnical conditions and slope design for the troubled RB slope had started, also parts of the left bank (LB) cut slope failed below crest level and threatened to grow into a global slope failure. With only 26 months’ time left for starting energy production, the slope instabilities jeopardised the economic success of the entire project. Within a 3‐month emergency mission for both RB and LB slopes, a dedicated team succeeded in understanding the geotechnical problems, planning and implementing immediate mitigation measures, and developing design solutions. Operation of Cetin Dam and HEPP commenced in 2020.

When contract clauses conflict: The Salvador light rail vehicle concession

Infrastructure concession contracts may include clauses that allow for capacity expansion, term extensions, or even risk management strategies such as cap and floor schemes. These clauses provide project managers with the flexibility required to adapt their operational strategies as new information is revealed in time and limit investor risk. However, when contracts include combinations of these clauses, determining their overall impact on the objectives of the contract and the project is non-trivial and require the combined analysis of these effects. While the literature on the valuation of infrastructure projects tends to focus on a single type of flexibility at a time, we analyze the combined interaction between these clauses and their impact on the overall value of the project under the real options approach. Using the Salvador Light Rail Vehicle (LRV) concession project as a numerical example, our results suggest that these clause interactions can have non-intuitive results and negatively affect the stated objectives of both parties in the contract. We also show how policy makers can use this information to improve the value of the project to society and reduce the risk to the government.

Concession contracts: analysis of the subsidiary liability of the public administration for labor debts

Management and concession contracts, of which public-private partnerships are a type, have become the most dynamic form of state action in the economy. Given the trends of today's capitalism and the official public policy announced, they should multiply, in line with the announced Growth Acceleration Program (PAC) 2023. It is expected that, in the event of default by employers, it will be inevitable to ask, in court, whether the state can be held jointly or severally liable for labor debts. Therefore, the aim of this article is to verify the extent to which public administration liability occurs in concession contracts. The methodology applied is based on the deductive method and the research is qualitative in nature, with the data source based on documentary, bibliographical and case law research. It should be noted that the majority of case law recognizes that the public administration is subsidiarily liable for the debts of so-called "management contracts", a reasoning that should be extended to the labor debts of concessionaires, including in public-private partnerships.

Driving Peru’s Road Infrastructure: An Analysis of Public–Private Partnerships, Challenges, and Critical Success Factors

Peru has experienced significant growth but faces challenges with its infrastructure. Despite economic and population growth, competitiveness has not risen at the same pace. The importance of proper roads for economic development and the lack of planning have led the country to confront an infrastructure deficit. This deficit affects connectivity and the quality of the road networks, thereby influencing competitiveness. To bridge this gap, the PPP modality had been used, but challenges were encountered, ranging from the execution of works to maintenance issues. This research study pursues three main objectives: to describe the current landscape of road infrastructure in Peru; to present the Peruvian PPP system and the experience gained through implemented concession contracts; and to identify the critical success factors of Peruvian concessions and propose an evaluation methodology for future contracts. To achieve this, an empirical study of 16 operational road PPPs and a literature review of the most relevant international experiences on success variables for such contracts were conducted. The primary contribution of this study lies in presenting the Peruvian experience and identifying key success factors for this type of contracts in Peru.

Post Concession and Users’ Perceptions of Seaports in Nigeria

Seaports in Nigeria are gradually moving away from being publicly operated to engaging the private sectors in terminal operations through concession contracts. This paper examined the Users’ Perceptions of the Pre and Post Concession of Nigerian seaports. The study employed qualitative and quantitative research method with data spanning between 1994 and 2019. The results showed that; the performances of Pre concession was perceived poor by the users in Onne seaport (mean = 1.84) while it was graded good at Post concession (mean = 3.49). Port users Perceived the performances of Apapa seaport at Pre concession as poor (mean = 1.88) while it was perceived as good at Post concession (mean = 3.11). Port users Perceived the performances of Warri port at Pre concession as poor (mean = 1.75), while it was perceived good at Post concession (mean = 3.09). However Port Users in all the ports perceived level of corruption lower at the pre concession (mean = 1.64) than the post concession (mean = 2.87). In all the selected ports, users rated relevance of ICT in cargo clearance as most perceived good while the satisfaction of the port services was perceived least at concession (mean =3.64, 2.75). The paper concludes that there was an improvement in the provision of adequate & modern critical infrastructures at concession. The relevance of ICT in cargo clearance improved at concession as well as the managerial competency of the terminal operator. However, at the period of this paper, levels of corruption were perceived positive and significant at concession.

Aggressive bidding and the renegotiation of concession contracts: Empirical evidence from Peru*

This paper confirms a positive relationship between the aggressiveness of bids and the probability of renegotiating concession contracts. We use a database of 113 concessions awarded in Peru, finding that a 1% increase in bidding aggressiveness increases the probability of contract renegotiation by 2.4%–3%. This impact is higher for the transportation sector. Our results are robust to several econometric specifications. These results confirm the hypothesis that bidders will submit aggressive bids to renegotiate contract terms once the government and concessionaire are tied, and competition is no longer possible.

Comparison of Contracts on Business Cooperation on Maritime Domain in Nautical Tourism Ports and Lease Agreements

The paper discusses the contract on business cooperation on maritime property in the ports of nautical tourism in the context of named and unnamed contracts, the scope of freedom of contract in the context of the concession contract as a "fundamental" contract, as well as the method by which the contract on business cooperation is qualified in the Croatian legal system. This contract is apostrophised in the context of mixed contracts and sui generis contracts as types of contracts that are not regulated by law. The acceptance of the provisions of the lease agreement as a named contract in Croatian legislation in business practice when concluding a business cooperation agreement is examined, as well as the similarities of these two agreements. The aim of the paper is to use the comparative law method to complete knowledge about the positioning of business cooperation contracts on maritime property in nautical tourism ports in the context of named and unnamed contracts, i.e. mixed and sui generis contracts, and to determine the appropriateness and compatibility of the lease contract with the business cooperation contract.

FIELD OF APPLICATION OF ALGERIAN COMPETITION LAW TO INTERNATIONAL DISTRIBUTION CONTRACTS (Model Trade Concession Contract)

The astonishing expansion of the global market and its trend to- wards globalization and the spread of international contracts have led to the emergence of international distribution channels aimed at achieving economic development and, thus, to the need for the Algerian market to integrate with these economic developments by creating an economic environment commensurate with these con- tracts considering free competition. The franchise contract is one of the international distribution contracts that contribute significantly to the development of devel- oping countries by expanding the spread of major brands across the world, but these contracts are subject to some competitive legal conditions to avoid competition in the market. Through this study, we will learn about the concept and types of commercial concession contract and the scope of application of the provisions of the Algerian competition law to it.

Трудовые отношения и конфликты на концессионных предприятиях лесной промышленности Архангельской губернии в 1920-е годы

This article dwells on the labour relations at the timber enterprises of the Arkhangelsk Province granted by the Soviet government as a concession to foreign entrepreneurs in the 1920s. The main sources include archival (concession contracts and reports, results of inspections of concessionary enterprises by the authorities, shorthand reports of meetings of Soviet party and trade union organizations, materials of factory rates commissions and investigative and judicial authorities), as well as published sources, primarily, contemporary (publications in newspapers and magazines). Emphasis is placed on the authorities’ attitude to labour conflicts. Timber enterprise concessions were of great international importance to the central government and economic importance to the local authorities; therefore, unlike at other concessionary enterprises, the authorities often supported the “capitalists”. The concessionaires, in their turn, being interested in attracting skilled workers to their enterprises and seeking to normalize relations with the population and the authorities on the territory designated for forest exploitation, were accommodating the employees by spending substantial funds to build housing as well as social and cultural facilities in the factory settlements. Labour relations and conflicts are examined in the article using the example of four personnel categories: skilled workers; labourers at the sawmills; peasants engaged in logging and delivering timber to the factories (loggers and rafters, united in artels); administrative and clerical employees. In addition, a conclusion is made about the specificity of labour conflicts caused by the post-revolutionary social expectations of the population.

Why go public? Public configurations and the supportive and divergent views towards public district heating in the Netherlands

IntroductionCities are taking up services of social importance under the (re)municipalisation movement. The Dutch government embarked on an ambitious heat transition and proposed in 2022 to make all district heating projects public or semi-public, with a majority public share. This proposal has sparked intense debates among groups in favour of and against a shift to public ownership.MethodsThis study assessed 16 public projects through qualitative research and uncovered the arguments for and against public ownership among key public and private stakeholders.ResultsWhile public ownership is deemed necessary to meet social objectives and address the shortcomings of private models, critical views question the economic performance and inappropriate political choices in some public projects. These critical views propose alternative ways to safeguard public values, such as ensuring affordability and meeting climate goals. Despite disagreements, public and private actors recognise the shared responsibility and the importance of the other's role. They agree that the central government's proposed mandate for public ownership may limit flexibility at the local level and prevent other effective configurations like public-private partnerships with equal public-private shares.DiscussionReflecting on the study findings, it is debatable whether mandating public ownership nationwide, as proposed by the Dutch government, should become the approach to tackle current challenges instead of allowing more flexibility. The upcoming Heat Act may reduce key issues justifying public ownership, such as affordability, cherry-picking and the lack of transparency of private projects. Further research is needed to determine whether public ownership would enhance citizens' support and speed up realisation. Public ownership may still be necessary if social and cost benefits outweigh those from other configurations or long-term concession contracts are too risky. Implementing regulations protecting public values and enabling the coexistence of public, private or public-private configurations tailored to each unique local context could be an alternative, as successful district heating sectors abroad demonstrate.

Subsidies and extra-tariff revenues in the Brazilian Public Transportation scenario and its relationship with urban mobility

Urban Passenger Transportation is an essential service of public utility and, therefore, seeks to implement the right to universal mobility for different social classes. It is evident that the model must be regulated to guarantee social equity also through sustainable mobility. The objective of this paper is to identify policies applied to Public Transportation that are directly related to the subsidy theme, to propose a method to ensure the value of the affordable fare, maintaining the economic-financial balance, without, however, conditioning it to the stipulated level of service by the public concession contract. Applied research was used with a descriptive objective, performing analysis into the Brazilian scenario. Since these are public resources intended for service providers for extra-contractual intervention, the challenges and complexity of interpreting the effectiveness of the subsidy to the detriment of the social tariff are considered. In addition to proposing the method itself, this paper shows how to use a subsidy combined with extra-tariff revenues, in order to equalize operating costs without interfering with the system's level of service.

Asset Valuation Model for Highway Rigid Pavements Applicable in Public–Private Partnerships Projects

Recently, in Chile, infrastructure asset value has been incorporated into highway concession contracts. However, the current valuation model used for rigid pavements is not adapted to the standards and conditions of such projects. This study develops a valuation model for rigid pavements of interurban highway concessions and evaluates it in a case study. The proposed model captures the loss in asset value associated with the performance degradation over time, considering a typical Jointed Plain Concrete Pavement (JCPC) configuration. The value is calculated using performance indicators that represent the structural capacity and level of service provided to road users. The model represents a significant improvement compared to current asset valuation models used in highway concessions. It enables the public agency to objectively evaluate the preservation of asset value carried out by the private partner during the concession. Additionally, it could also be used as a tool to establish payments between infrastructure stakeholders. Some of the concepts applied could also be relevant for other highway assets existing in Public–Private Partnership (PPP) projects.

Public and Private Law Aspects of Breach of the Concession Contract in Slovenian Law

Breach of the concession contract is governed by the provisions from the field of concession relations and by the rules of the law of obligations. However, the rules of the law of obligations apply only mutatis mutandis. A concession contract is an administrative contract that is characterised by the fact that the parties must always pursue a public interest, which generally prevails over other contractual interests. Thus, it may happen that continued fulfilment of the contract is still in the public interest despite the breach. Slovenian law is often not adapted to the special nature of the concession contract. Regulations in the field of concession relations restrict the rescission right of the concessionaire only to certain cases and do not offer it generally for all concession contracts, which may jeopardise the principle of continuity of the performance of the public service. On the other hand, the grantor may rescind the contract, revoke the concession, and in some cases terminate it in accordance with the EU law due to the concessionaire’s breaches. However, the rules often do not establish a clear boundary between these sanctions, which creates legal confusion. The intertwining of public law and private law elements of the concession contract is also typical for the assessment of damages liability. If the damage is the result of (unlawful) public authority actions by the grantor, such liability must be assessed in accordance with the rules on State liability for damages due to unlawful conduct, even if the conduct also constitutes breach of contract. The consequences of breach of public law acts by the concessionaire are not generally regulated in Slovenian law. If such a breach does not also constitute breach of contract, the grantor has the right to compensation only if the sector law so stipulates

Procedure for Concluding Civil Law Contracts with the Participation of the State of Ukraine under Martial Law

Purpose. The purpose of the article is to establish the peculiarities of the participation of the state of Ukraine in contractual obligations, to analyze the legal regulation of the procedure for concluding civil law contracts with the participation of the state of Ukraine, in particular, in the conditions of martial law, to make relevant theoretical conclusions. Methodology. The methodology includes a comprehensive analysis and generalization of the available scientific and theoretical material and the formulation of relevant conclusions and recommendations. The following methods of scientific knowledge were used during the research: formal-logical, analysis, comparative analysis, systemic-structural, terminological, normative. Results. In the process of research, it was recognized that the state of Ukraine is an equal participant in contractual obligations, however, certain exceptions to this rule may be established in the conditions of martial law. This is related to issues of ensuring national security and defense of Ukraine. Originality. In the process of research, it was established that the state of Ukraine is the party to the concluded contracts, and not the state body that represents it. The State of Ukraine may be a party to sales contracts, leases, concession contracts, product distribution agreements, etc. The procedure for concluding, changing and terminating contractual obligations with the participation of the state of Ukraine is provided exclusively by law, in particular, taking into account the requirements of martial law. Practical significance. The results of the study can be used in law-making and law-enforcement activities to resolve important issues related to the national security and defense of Ukraine.

Ochrona prawna udzielania koncesji – między prawem publicznym a prywatnym oraz między prawem europejskim a krajowym

This scientific paper discusses the legal protection of concession contracts in Slovene law. The main objective is to identify the problems caused by the current regime and to propose some solutions. To achieve this aim, it relies in particular on the comparative and dogmatic research method. The author notes that the legal protection depends on the type and value of the concession: for concessions falling within the scope of Directive 2014/23/EU it is provided in accordance with the rules of the EU directives on legal protection, while other concessions are subject to the rules of national law. Legal protection also varies depending on whether the dispute falls under administrative or civil law: public-law disputes are usually decided by administrative courts and civil-law disputes by ordinary courts. Such a regime may interfere with the right to effective judicial protection, as there is often no clear dividing line between public and private law protection. This can lead to delegation of cases between different authorities and a prolonged decision-making process. The author therefore considers that all disputes relating to concession contracts should be decided by one court – the Administrative Court. In addition, it is necessary to establish mechanisms to ensure effective protection of non-selected tenders, as the current regime does not provide for such protection. The novelty of the presented research lies in the fact that no scientific papers deal with the covered issues published so far. The author believes that the paper has a cognitive value for both science and practice.

Using a Discrete-Event Simulation Model for Evaluating the Operational Performance of Toll Plazas

Toll plazas are commonly described as a potential bottleneck due to the collection process at specific points on the highway. In a highway concession model, tolls are used to cover the majority of infrastructure costs. However, not all existing road concessions have toll plaza–related key performance indicators (KPIs), resulting in less efficient operations for transport managers and road users. To address this issue, this paper presents a discrete-event simulation (DES) model for policy analysis and the model for the planning, management, and evaluation of toll plazas using an extensible simulation package with animation capabilities, built by selecting modules that contain process features. The DES describes situations in which entities (vehicles) arrive, wait in the queue (if necessary), and then are attended to before leaving the system, either directly or indirectly. As a result, the simulation is based on discrete events (arrivals and departures) and statistical process data. This paper examines data from Brazil’s first public–private partnership (PPP) project in the area of road infrastructure and analyzes the toll plaza in Itaúna/MG using a case study methodology. The DES model was used in this case study, and the results show that the toll plaza was in good operating condition during the peak hour analyzed because the vehicular flow was lower than the system capacity. The willingness to pay the toll rate through the concept of open road tolling or a free-flow system, on the other hand, would provide significant benefits to road users because it would significantly reduce the time it takes to cross the toll plaza. The developed DES model assists toll plaza managers in making decisions while keeping in mind the need to comply with the operational efficiency measures agreed upon in the concession contracts.