Menu
Home
People
Places
Arts
History
Plants & Animals
Science
Life & Culture
Technology
Reference.org
Concession (contract)
open-in-new
<h2 id="early-history">Early history</h2> <p class="note">For other examples of concessions, see <a href="/facts/Gibbons_v._Ogden/DxVXU6Gf">Gibbons v. Ogden</a> and <a href="/facts/History_of_rail_transportation_in_the_United_States/9hn9ywdj">History of rail transportation in the United States</a>.</p> <h3>Sultanate of Egypt</h3> <p><a href="/facts/Muhammad_Ali_of_Egypt/ka5Kv2HE">Muhammad Ali of Egypt</a> used contracts called concessions to build cheap infrastructure - dams and railroads - whereby foreign European companies would raise capital, build projects, and collect most of the operating revenue but would provide Ali's government with a portion of that revenue.<a class="footnote-ref" id="fnref:3" href="#fn:3"><sup>3</sup></a> </p> <h3>D'Arcy Concession</h3> <p class="note">Main articles: <a href="/facts/D%2527Arcy_Concession/fsxRtwzT">D'Arcy Concession</a> and <a href="/facts/Anglo-Persian_Oil_Company/h69xwg8h">Anglo-Persian Oil Company</a></p> <h2 id="regulation">Regulation</h2> <h3>European Union</h3> <p>Within the <a href="/facts/European_Union/6GYcR8qM">European Union</a>, the granting of concessions by public bodies is subject to regulation. Works concessions have been subject to award rules for some time as Directive 2004/18/EC of the <a href="/facts/European_Parliament/H9WLUd1r">European Parliament</a> and of the <a href="/facts/Council_of_the_European_Union/xlE6rYKb">Council of the EU</a> on <a href="/facts/Government_procurement_in_the_European_Union/tkEnYEC7">public procurement</a> applied to works concessions. The award of services concessions with a cross-border interest has been subject to the principles of the <a href="/facts/Treaty_on_the_Functioning_of_the_European_Union/g1CPeV2q">Treaty on the Functioning of the European Union</a>. The <a href="/facts/European_Commission/Cc5JgbEI">European Commission</a> had originally included public concession contracts in the Services Directive of 1992, but these were removed from its scope by the European Council.<a class="footnote-ref" id="fnref:4" href="#fn:4"><sup>4</sup></a> However, the European Parliament and the Council issued a further Directive 2014/23/EU on the award of concession contracts on 26 February 2014,<a class="footnote-ref" id="fnref:5" href="#fn:5"><sup>5</sup></a> which required EU member states to introduce <a href="/facts/Transposition_(law)/RFgMarhP">national legislation</a> covering the award of concession contracts in excess of EUR 5,186,000 awarded on or after 18 April 2016. </p> <h3>United Kingdom</h3> <p>In the UK, the equivalent threshold for concession contracts is £4,104,394. Concession contracts granted by public bodies fall within the term "covered procurement" in the <a href="/facts/Procurement_Act_2023/r18G5Xd5">Procurement Act 2023</a>.<a class="footnote-ref" id="fnref:6" href="#fn:6"><sup>6</sup></a> </p> <h2 id="see-also">See also</h2> <ul><li><a href="/facts/Concessions_and_leases_in_international_relations/INJV6ATV">Concessions and leases in international relations</a></li> <li><a href="/facts/Public-private_partnership/b4RAUT2j">Public-private partnership</a></li> <li><a href="/facts/Private_finance_initiative/3Mh2n9uS">Private finance initiative</a></li> <li><a href="/facts/Production_sharing_agreement/DAKe7CTM">Production sharing agreement</a></li></ul> <h2 id="references">References</h2> <ol> <li id="fn:1"><p>What is a concession agreement?, wisegeek.com <a href="http://www.wisegeek.com/what-is-a-concession-agreement.htm#did-you-know" target="_blank">http://www.wisegeek.com/what-is-a-concession-agreement.htm#did-you-know</a> <a href="#fnref:1" class="footnote-back-ref">↩</a></p></li> <li id="fn:2"><p>Definition of concession agreement investorpedia.com <a href="http://www.investopedia.com/terms/c/concessionagreement.asp" target="_blank">http://www.investopedia.com/terms/c/concessionagreement.asp</a> <a href="#fnref:2" class="footnote-back-ref">↩</a></p></li> <li id="fn:3"><p>Karabell, Zachary (2003). Parting the desert: the creation of the Suez Canal. Alfred A. Knopf. p. 34,36. ISBN 0-375-40883-5. <a href="0-375-40883-5" target="_blank">0-375-40883-5</a> <a href="#fnref:3" class="footnote-back-ref">↩</a></p></li> <li id="fn:4"><p>England and Wales Court of Appeal (Civil Division), JBW Group Ltd v Ministry of Justice (2012) EWCA Civ 8 (16 January 2012), accessed 3 January 2021 <a href="https://www.bailii.org/ew/cases/EWCA/Civ/2012/8.html" target="_blank">https://www.bailii.org/ew/cases/EWCA/Civ/2012/8.html</a> <a href="#fnref:4" class="footnote-back-ref">↩</a></p></li> <li id="fn:5"><p>Directive 2014/23/EU of the European Parliament of the Council on the award of concession contracts <a href="http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014L0023&from=EN" target="_blank">http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014L0023&from=EN</a> <a href="#fnref:5" class="footnote-back-ref">↩</a></p></li> <li id="fn:6"><p>UK Legislation, Procurement Act 2003, section 8, accessed 9 December 2023 <a href="https://www.legislation.gov.uk/ukpga/2023/54/section/8/enacted" target="_blank">https://www.legislation.gov.uk/ukpga/2023/54/section/8/enacted</a> <a href="#fnref:6" class="footnote-back-ref">↩</a></p></li> </ol>