Concessions - The Way to Privatize Infrastructure Sector Monopolies
Under concession arrangements, the state delegates to the private sector the right to provide a service, yet retains some control over the sector by incorporating in a concession contract or license the terms and conditions that will govern the inf...
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| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/1995/10/697000/concessions-way-privatize-infrastructure-sector-monopolies http://hdl.handle.net/10986/11648 |
| Summary: | Under concession arrangements, the state
delegates to the private sector the right to provide a
service, yet retains some control over the sector by
incorporating in a concession contract or license the terms
and conditions that will govern the infrastructure project
or company. This approach is well suited for privatizing
sectors with monopolistic characteristics. This Note
outlines the concession-type approach and some of its
operational implications. Designing a concession that
strikes the balance among the interests of the investors,
the consumers, and the public authorities and that fits the
conditions of both the sector and the country requires a
clear identification of the objectives and tradeoffs. Each
concession is likely to be a special case requiring special
attention and unique features. |
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