concession agreements. Concession agreement: essence, application, conditions, preparation, procedure for concluding, amending, parties, examples

Concession

The word for the Russian language is borrowed. The borrowing language is German or French. Borrowing time - the end of the 18th century. The range of meanings is economic and legal. Economic importance- handing over by the state of enterprises or plots of land for use by a "foreigner". Legal significance- an agreement on such delivery or a separate clause of the assignment agreement

The roots of the word are related to the Latin word concessio permission, concession. A new nuance is revealed if we turn to deep sources: English concede, Latin concedere admit, accept, accept com- + cedere- earn income, harvest. If summed up - an agreement on joint receipt of income, that is, a mutually beneficial agreement.

The modern meaning of the word as an economic and legal concept:
Concession in the broadest sense is an agreement between the state and business, fixing the conditions for the use of state property by business.
Concession in the narrow sense- an agreement on the transfer to operation of a foreign state, company or individual for a certain period natural resources, enterprises and other economic facilities owned by the state.
A concession is an enterprise operating under a concession agreement.

Purpose of the concession- development or restoration of the national economy and development natural resources.

Types of concession agreements:
BOT (Build - Operate - Transfer). For the concessionaire - construction, operation and after a certain period - the transfer of the object to the state;
BTO (Build - Transfer - Operate)- "Construction - transfer - management". For the concessionaire - construction, transfer to the state (concedent) in ownership immediately after the completion of construction, then - transfer to the operation of the concessionaire;
SBI (Build - Own - Operate). For the concessionaire - construction, operation with the right of ownership, the term of which is not limited;
BOOT (Build - Own - Operate - Transfer). For the concessionaire - the possession and use of the constructed object on the right of private ownership for a certain period, after which - the transfer of the object to the ownership of the state;
BBO (Buy - Build - Operate). For the concessionaire - purchase on the terms of restoration or expansion of the existing facility.

Derived concepts:
Concessionaire- the one who received the concession (individual or legal entity).
concessor- the state granting the concession.
Concessionary- relating to the concessionaire, concessionaires.
concession fee- established by the agreement and determined on the basis of the expected results of the concession.

Scale of use. It is actively used in 37 countries of the world. IN different time The USSR had railway facilities on concession terms in Afghanistan, Austria, Finland, Mongolia, and North Korea.

Category:
Related concepts:
rent, wealth, ransom
farming, leasing, wealth
核准, 许可, 特许, 经营权, 租让企业, 租借合同

In 1920, concessions were introduced. completely destroyed private property in Russia. This led to a deep economic crisis in the country. The introduction of concessions was supposed to improve the situation. However, many historians and journalists think differently. They believe that it was intended to "clear the field" for foreign capital. Like it or not, but foreign "non-capitalist" companies really began to receive broad rights to economic activity. The policy of the "Red Terror", surplus appropriation, that is, the actual robbery of the population, is still hushed up in the West. However, after the liquidation of all foreign concessions, all foreign historians, politicians and public figures they started talking about human rights, about mass repressions, etc. What happened in reality? Still not known. However, the year the concessions were introduced is the year the country was razed to the ground. But first, some theory.

What are concessions

"Concession" in Latin means "permission", "assignment". This is the commissioning by the state to a foreign or domestic person of part of its natural resources, production capacities, factories, plants. As a rule, such a measure is taken in times of crisis, when the state itself is unable to establish production on its own. The introduction of concessions allows you to restore the ruined state of the economy, provides jobs, income Money. A large role is given to foreign capital for the reason that investors are willing to pay in international currency, while domestic citizens simply do not have money.

In 1920, a decree of the Council of People's Commissars "On Concessions" was adopted. A year before the official proclamation of the NEP. Although the project was discussed back in 1918.

The 1918 Concession Theses: Treachery or Pragmatism

Some journalists and historians today talk about attracting foreign capital to Soviet Russia as a national betrayal, and the country itself will be called a colony of capital under the bright slogans of socialism and communism. However, one can analyze the articles of theses of 1918 to understand whether this was actually the case:

1. Concessions must be leased in such a way that the influence of foreign states is minimal.
2. Foreign investors were required to adhere to domestic Soviet laws.
3. At any time, concessions can be redeemed from the owners.
4. The state must necessarily receive a share in the management of enterprises.

The fact that the authorities carefully approached this issue can be concluded from the project of the first such companies in the Urals. It was assumed that with the company's statutory fund of 500 million rubles, 200 would be invested by the government, 200 by domestic investors, and only 100 by foreign investors. We agree that with such a division, the influence of foreign bankers on the sectors of the economy is minimal. However, the capitalists were not going to invest money under such conditions. Germany with its huge resources fell into the hands of the "predators". American and European bankers imposed conditions on the Germans so beneficially for themselves that such proposals from Russia were simply not interesting. Capitalists needed to plunder countries, not develop them. Therefore, the theses of 1918 remained only on paper. Then the civil war began.

Deterioration of the situation in the country

By 1921 the country was in the deepest crisis. First World War, intervention, civil war led to the consequences:

• ¼ of all national wealth was destroyed. The production of oil and coal was halved compared to 1913. This led to a fuel, industrial crisis.
• The rupture of all trade relations with As a result, our country tried to cope with the difficulties alone.
• Human losses are estimated at 25 million people. This number includes the potential loss of unborn children.

In addition to wars, the policy of war communism proved to be a failure. Prodrazverstka completely destroyed agriculture. It simply didn't make sense for farmers to grow crops, because they knew that food detachments would come and take everything. The peasants not only stopped giving away their food, but also began to rise up in armed struggle in Tambov, the Kuban, Siberia, and so on.

In 1921, the already catastrophic state of affairs in agriculture was aggravated by a drought. Grain production also halved.

All this led to the introduction of what actually meant a reverse rollback to the hated capitalist system.

New economic policy

At the Tenth Congress of the RCP (b) a course was adopted, which was called the "new economic policy". This meant a temporary transition to market relations, the abolition of surplus appropriation in agriculture, and its replacement with a tax in kind. Such measures significantly improved the situation of the peasants. Of course, there were kinks even then. For example, it was necessary to hand over 20 kilograms from each cow every year in some regions. How could this be done every year? Unclear. After all, it is impossible to cut off a piece of meat from one cow every year without slaughter. But these were already excesses on the ground. In general, the introduction of a food tax is a much more progressive measure than the bandit robbery of peasants by food detachments.

The introduction of concessions was actively taking place (in the period the term began to be applied only to foreign capital, since foreign investors refused to jointly manage enterprises, and there were no domestic investors. During the NEP period, the authorities began the reverse process of denationalization. Small and medium-sized enterprises returned to their former owners. Foreign investors could rent Soviet enterprises.

Active introduction of concessions: NEP

Since 1921, there has been an increase in businesses leased or purchased by foreign investors. In 1922 there were already 15 of them, in 1926 - 65. Such enterprises operated in the sectors of heavy industry, mining, mining, woodworking. In total, the total number has reached more than 350 enterprises for all time.

Lenin himself had no illusions about foreign capital. He talked about the stupidity of believing that the "socialist calf" would embrace the "capitalist wolf." However, it was impossible in the conditions of total devastation and plunder of the country to find ways to restore the economy.

Later, the introduction of concessions began for minerals. That is, the state began to give natural resources to foreign companies. Without this, as Lenin believed, it was impossible to implement the GOERLO plan throughout the country. We saw something similar in the 1990s. after

Review of agreements

The introduction of concessions is a forced measure related to civil war, revolutions, crises, etc. However, by the mid-1920s this policy is being rethought. There are several reasons:

• Conflict situations between foreign companies and local authorities. Western investors are accustomed to complete autonomy in their enterprises. Private property was not only recognized in the West, but also sacredly guarded. In our country, such enterprises were treated with hostility. Even among the highest party workers, there was constant talk of "betraying the interests of the revolution." Of course, they can be understood. Many fought for the idea of ​​equality, brotherhood, the overthrow of the bourgeoisie, and so on. Now it turns out that, having overthrown some capitalists, they invited others.
• Foreign owners were constantly trying to get new preferences and benefits.
• Many states began to recognize the new state of the USSR in the hope of receiving compensation for the nationalization of enterprises. The Soviet authorities issued a return bill for the destruction and intervention. These contradictions resulted in sanctions. Companies were forbidden to enter the Soviet market. By the mid-20s. In the 20th century, applications for concessions became many times less.
• By 1926-1927, the regulatory authorities began to receive balances of payments. It turned out that some foreign enterprises receive more than 400% of the annual return on capital. In the extractive industry, the average percentage was low, about 8%. However, in the processing industry it reached over 100%.

All these reasons influenced further fate foreign capital.

Sanctions: history repeats itself

An interesting fact, but 90 years later, the story of Western sanctions repeated itself. In the twenties, their introduction was associated with the refusal of the Soviet authorities to pay their debts. tsarist Russia and also pay compensation for nationalization. Many states recognized the USSR as a country for this very reason. After that, many companies, especially technology companies, were banned from doing business with us. New technologies stopped coming from abroad, and concessions began to gradually phase out their activities. However, the Soviet authorities found a way out of the situation: they began to hire professional specialists on individual contracts. This led to the immigration of scientists and industrialists to the USSR, who began to create new high-tech enterprises and equipment inside the country. The fate of the concessions was finally sealed.

The end of foreign capital in the USSR

In March 1930, the last agreement was concluded with the Leo Werke company for the production of dental products. In general, foreign companies already understood how soon everything would end, and gradually left the Soviet market.

In December 1930, a decree was issued banning all concession agreements. Glavkontsesskom (GKK) was reduced to the position of a legal office that consulted with the remaining companies. By this time, industrial goods of the USSR were finally banned by Western sanctions. The only product we were allowed to sell on international markets was bread. This is what led to the subsequent famine. Grain is the only product for which the USSR received currency for the necessary reforms. In this situation, a collective-farm-state-farm system with large-scale collectivization is being created.

Conclusion

So, the introduction of concessions (the year in the USSR - 1921) takes place as a forced measure. In 1930, the government officially canceled all previous contracts, although some enterprises were allowed to remain as an exception.

For the most part, the concept of a concession in Russian Federation used in economics and jurisprudence. In the context of economics, this term defines the leasing of land plots to foreign investors. Such an agreement can only be entered into by public authorities. From a legal point of view, a concession is a document that confirms a transaction or a separate part of it.

Concept of concession

Not so long ago, the concept of a commercial concession, or franchising, was introduced in the economy of our country. This is one of the successful entrepreneurial methods for developing the country's economy. Business is developing under the concession system, bringing good income to the state budget and to the users themselves.

The peculiarities of legislative regulation determine the success National economy, but, despite the fact that there are a lot of positive moments, the market cannot automatically regulate the life of society and establish the country's economic processes in automatic mode. All this leads to the fact that not all segments of the population are financially protected, due to the fact that the money supply cannot be distributed evenly among all members of society. Not all citizens are guaranteed the right to work, and not all disadvantaged or low-income families receive material support from the state.

There is an accepted and valid the federal law, which governs individual concession agreements. This normative act contributes to the development of concession relations. It takes into account the conclusion of agreements, their drafting and regulation, taking into account the entire procedure.

To satisfy all the interests of the national economy, the actions of this system must be coordinated and rational. All actions must be prescribed and fixed at the legislative level. Such actions will help create a better environment in the development of the state economy.

As a method of doing business, a commercial concession is beneficial to both parties to the arrangement. As for right holders, they can effectively manage their property without spending a lot of money. In addition, the share of a legal entity in modern market increases significantly with the conclusion of this agreement. The user will use an already developed and economically sustainable system for earning, so this contract is highly likely to bring the expected profit.

The above conclusions are based on many years of practice. For example, in the United States, franchising is very actively used, the number of sales under this system is equal to a trillion dollars. Concerning retail, then franchising takes about 40% of it. Similarly, in the British economy there is a fairly large mass of these legal relations.

So - a concession is an agreement between two parties, which makes it possible to lease to legal entities, individuals and foreign persons, land plots, subsoil and other values ​​for the development of the economy.

Concession types

The main types of concessions are fixed in international practice. So, there are the following types of this legal relationship:

• BOOT;

In the first case we are talking on the construction of the object, its management and transfer. The concessionaire is engaged in the development and operation of the facility on the basis of ownership. Operation takes place during the designated period, and after that the object must be transferred to the state.

The second case involves the construction, transfer and management of facilities. The concessionaire builds the object, but it is then transferred to the ownership of the authorities. Only after that from the authorities the object is transferred to the use of the developer.

IN next case legal relationship occurs in the form of construction, ownership and management. The concessionaire is engaged in the construction of the facility, he also carries out its operation. The concessionaire owns the facility as the owner. It is important that the terms of such a legal relationship are not limited.

The fourth case implies that the developer uses and owns the object on the basis of private ownership. Such legal relations are valid for a certain period of time. When the term ends, the object becomes the property of the state. Another type of concession is the restoration of an object and its expansion. The state sells the property to the private sector, which is then engaged in its restoration. The purpose of this action is effective management object.

So, not only objects, but also those lands from which minerals can be extracted can be provided for the use of entrepreneurs and firms. This is not privatization, and the state still remains the owner of the land. But with all this, most of the income from activities is received not by the state, but by the investor. Concession agreements, unlike lease agreements, can have long terms, even for decades.

Commercial concession

A commercial concession agreement is the only legal institution that regulates legal relations regarding the creation and exploitation of objects of intellectual property for its own purposes.

Until recently, namely before the approval of the fourth chapter of the Civil Code of the Russian Federation, this term had a different definition. The definition was a contract that was concluded between two parties, the right holder and the user. The first party transferred to the second party for a period and for a fee a set of rights. Such rights can only be with this copyright holder, and these are:

• commercial designation;
• company name;
• secret of a commercial nature, access to which is limited;
• service mark;
• trademark and so on.

Since 2008, this rule has been applied in a new presentation. Now the first party undertakes, for a fee, to provide the other party with the opportunity to exercise its exclusive rights. This legal relationship can be concluded for a certain period of time or without specifying the terms. The list of exclusive rights may include the right to a trademark, service mark and other rights. Thus, a commercial concession is an agreement that is identical to such an agreement as a franchise or franchising known in the world economy.

The term "commercial concession" is a justified name for this agreement. Which is due to the fact that science also uses this term. Usually, a concession agreement implies the conclusion of a legal relationship between the state and a foreign investor. The state gives the investor the opportunity to carry out their activities and receive profit from it. In Russian legislation, one can find such a term as "production sharing agreement". This section establishes the rules for the division of production between a foreign investor and the state.

There is also another term - a concession agreement. According to this term, one party, at its own expense, creates or reconstructs real estate. This is the object of the concession agreement. The right of ownership to the property that is the object of the agreement belongs to the concessor. He, in turn, provides the concessionaire, that is, the other party, with an object to carry out his activities. Thus, the concession agreement cannot act separate view agreement, this is an agreement that has signs different types contract.

As for the commercial concession agreement, it must contain the data of both parties, their addresses and names. It should also indicate what the parties are doing, that is, determine the type of their activity. The type of contract and all its provisions are also determined. Such provisions must be agreed by the parties in advance.

Agreement conditions

The contract of commercial concession must contain both main and secondary conditions. In order to draw up this type of contract, there are quite strict requirements. These agreements must be registered after their conclusion in the territorial offices of the Federal Tax Service. Such departments keep the parity of entrepreneurs.

Considering that the subject of the agreement is a permit for the exploitation of exclusive rights, it is necessary, after its conclusion, to go through another procedure for registering the agreement. It is carried out within the walls of the patent office, and without such registration, the document may not be recognized as valid at all.

The obligation to draw up a contract and obtain all necessary licenses and permits is the responsibility of the copyright holder. If rights are transferred to others legal entities, then usually the second side of the legal relationship is the new copyright holder. The document does not lose its legal force. The same applies to the case if the copyright holder suddenly dies. And at the same time, new copyright holders will take its place. If they clearly follow the entire inheritance procedure, then the contract will not lose its legal force.

Thus, the concession provides for contractual agreements, under which a foreign investor can use the property of the state, acquiring ownership rights to manufactured products or goods. The objects of such agreements can be land plots, businesses, etc. One of the varieties of the concession agreement is a commercial concession or franchising. This agreement implies the use of trademarks, trademarks or trade secrets of the copyright holder.

Concession

Concession(from lat. concessio - permission, concession) - a form of agreement on the transfer to the use of the complex exceptional rights belonging to the copyright holder. The transfer to the concession is carried out on a reimbursable basis for a certain period or without specifying a period. The object of the agreement may be the transfer of rights to exploit natural resources, enterprises, equipment and other rights, including the use of a company name and (or) commercial designation, protected commercial information, trademarks, service marks, etc.

Payment of remuneration can be carried out in the form of one-time (lump) or periodic (royalty) payments, interest on revenue, margins at the wholesale price of goods or in another form established by the contract.

Concession, concession agreement- a form of public-private partnership, involving the private sector in the effective management of state property or in the provision of services usually provided by the state, on mutually beneficial terms.

concept

The concession means concessor(state) transfers concessionaire the right to exploit natural resources, infrastructure, enterprises, equipment. In return, the concessor receives remuneration in the form of one-time (lump) or periodic (royalty) payments. Concession agreements are implemented on the basis of public property, including using budgetary funds. In the absence of involvement of a public property resource in the partnership, the private partner is vested with the right to conduct a certain business, the exclusive or monopoly rights to which belong to a public legal entity, for example, parking activities, etc.

The objects of the concession agreement are primarily socially significant facilities that cannot be privatized, such as airfields, railways, housing and communal services and other infrastructure facilities, as well as public transport systems, healthcare, education, culture and sports facilities.

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buyout

Types of concession agreements

In international practice, the following types of concession agreements are distinguished:

• BOT (Build - Operate - Transfer)- "Construction - management - transfer". The concessionaire carries out construction and operation (mainly on the basis of ownership) for a specified period, after which the object is transferred to the state;
• BTO (Build - Transfer - Operate)- "Construction - transfer - management". The concessionaire builds an object that is transferred to the state (grantor) as the property immediately after construction is completed, after which it is transferred to the operation of the concessionaire;
• BOO (Build - Own - Operate)- "Construction - ownership - management". The concessionaire builds the facility and carries out subsequent operation, owning it on the basis of the right of ownership, the validity of which is not limited;
• BOOT (Build - Own - Operate - Transfer)- "Construction - ownership - management - transfer" - the possession and use of the constructed object on the right of private ownership is carried out for a certain period, after which the object becomes the property of the state;
• BBO (Buy - Build - Operate) -"Purchase - build - management" - a form of sale that includes the restoration or expansion of an existing facility. The state sells the facility to the private sector, which makes the necessary improvements for effective management.

Concession agreements in Russia

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New Economic Policy (1920s)

Isn't it dangerous to invite capitalists, doesn't it mean developing capitalism? Yes, this means developing capitalism, but this is not dangerous, because power remains in the hands of the workers and peasants, and the property of the landowners and capitalists is not restored. A concession is a kind of lease agreement. The capitalist becomes a tenant of a part of state property, under an agreement, for a certain period, but does not become an owner. The property remains with the state.

Before the Hague Conference in 1922, L. B. Krasin proposed returning to foreigners, former owners of enterprises, up to 90% of nationalized property, but only in the form of long-term concessions. Many foreign concessionaires agreed, but the idea met with strong domestic opposition.

Legislative regulation

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Synonyms:

See what "Concession" is in other dictionaries:

- (lat. concessio). Permission, consent, approval, concession, grant. Dictionary of foreign words included in the Russian language. Chudinov A.N., 1910. CONCESSION [lat. concessio permission, concession] economy. an agreement between a state and a foreign ... ... Dictionary of foreign words of the Russian language

An agreement for the temporary commissioning to a foreign state, legal entity or individual (concessionaire) on certain terms agreed by the parties of enterprises, land plots, subsoil and other objects and values ​​for the purpose of ... ... Financial vocabulary

concession- and, well. concession f., German. Konzession lat. concessio grant, permission. 1. obsolete, dipl. concession. And more than two treatises will not be signed. Also what should be given for the concession; I also don’t have tea, that this pleased them. 1710. AK 2 330… … Historical dictionary gallicisms of the Russian language

concession- An on-site point of sale where a concessionaire/catering service provider or other merchant sells or distributes food, beverages or merchandise. A concession is any outlet that sells soft drinks (but… … Technical Translator's Handbook

CONCESSION, assignment, transfer, permission, transfer of rights, appropriation. Dictionary Dahl. IN AND. Dal. 1863 1866 ... Dahl's Explanatory Dictionary

Source: http://www.urbaneconomics.ru/

One of the ways to reduce the expenditure part of the budget can be a reduction in budget expenditures on housing and communal services. The mechanism for reducing costs is the transfer to delegated management (concession, long-term lease, management agreement) of municipal utilities. Due to their advantages, long-term leases and concessions are becoming more common in the field of infrastructure. Such treaties are fully operational or underway in 37 countries, including 18 low-income countries. In the international sense, “concession” includes all the characteristics of a lease agreement for an enterprise as a property complex, but imposes additional obligations on the concessionaire organization in the field of capital investments necessary for the agreed expansion of production or increase in capacity to replace fixed assets. In the Civil Code of Russia, there is the concept of “concession” (Chapter 54, Articles 1027-1040 “Commercial concession”), however, in this chapter, the concept of “concession” is considered in its narrow sense as granting the right to use a complex of exclusive rights - franchising. Therefore, the provisions of this chapter of the Civil Code are not applicable to the transfer of rights to use and operate property complexes - enterprises and objects of municipal engineering infrastructure. Based on this, in Russian practice, when transferring a municipal enterprise to a concession, it makes sense to conclude an agreement for the lease of an enterprise as a property complex with additional conditions for the tenant to invest money in the reconstruction and modernization of this enterprise.

The main advantages of using the mechanism for transferring enterprises to delegated management (concession) are:

1. Limiting the financial participation of municipalities in the implementation of projects.
2. Creation competitive environment in the sector of housing and communal services. Despite the fact that at any given time there is only one provider of this type of service - the concessionaire, competition occurs before the signing of the contract, as a result of consideration of applications from applicants, and also after the expiration of the contract, when it is required to be renewed. As a result, there is competition for the market even though there is no competition in the market during the term of the contract.
3. cash flow to the region.
4. The concessionaire spends more than half of the funds invested in the project in the territory of its implementation in the form of acquiring a part necessary materials, hiring work force etc.
5. The construction or reconstruction of public utility facilities creates an additional number of jobs in the city.
6. Both enterprises as a whole and individual objects of communal infrastructure can be transferred to delegated management, which allows expanding the circle of potential investors.
7. After the expiration of the contracts in the property municipality adopts the most modern equipment.

When negotiating the transfer of a municipal enterprise to a concession, special attention should be paid to the following issues:

1. The price that the concessionaire is willing to pay for the right to operate the enterprise or the amount of public investment (subsidies)

The cost of transferring a municipal enterprise to a concession depends on the technical condition of the facility, the amount of investments that the concessionaire needs to make in the future, the size of the established tariff and rate of return, the concession period and other factors. In the event that the size of the required capital investments cannot be fully repaid by the concessionaire during the concession period, the administration of the municipality may assume obligations to carry out part of the investments.

2. Fee charged by the concessionaire for the provision of services

In international practice, the concessionaire company sells services at a tariff consisting of two parts: a fixed fee, which during the concession period should be the amount necessary to return capital investments, and a fee for the actually provided service, calculated taking into account the cost and the rate specified in the contract profitability. The main task is to ensure the financial attractiveness of investments and at the same time protect the public interest. Where the municipality sees its role primarily as consumer protection, it may charge the concessionaire no additional fee and award the contract based on the lowest bid to be charged to consumers. But in order to prevent a decline in the quality of services, it is necessary to introduce minimum standards for the quality of services provided. The conditions for the revision of tariffs should also be stipulated.

3. Term of the concession

The term of the concession agreement must be sufficient to return the concessionaire's investments and receive a profit. In international practice, the duration of the concession period is usually associated with the duration of the life cycle of the main assets.

The terms of concession agreements accepted in international practice are: toll roads - 30 years, electric power industry - 15 years, hydropower - 30 years, water supply and sanitation - 5-30 years, processing and disposal of solid waste - 4 years.

4. Scheme under which a municipal enterprise is transferred to a concession

Based on an analysis of the current situation, this moment the optimal scheme is the transfer of a municipal enterprise for rent as a property complex.

Using this scheme eliminates a number of problems:

• the enterprise remains municipal and falls under the regulation of the municipal authority;
• all facilities built by the concessionaire automatically become the property of the city;
• there is no need to make expenses that must be made in the event of liquidation of a municipal enterprise;
• the possibility of theft during the reorganization of the enterprise is reduced.

5. Composition and frequency of reporting provided by the concessionaire

Possible reporting forms - annual reports, technical reports, financial reports, income statement, terms of control by local authorities.

6. Criteria on the basis of which the work of the concessionaire is evaluated

The indicators that are obligatory for the concessionaire to fulfill, for example, continuity, quality of services provided, maintaining a certain level of technical condition of the facility, etc., are negotiated. The procedure for early termination of the concession agreement should also be stipulated in the event that the concessionaire fails to comply with any conditions.

7. Rights and obligations of the parties at the end of the contract

The conditions for the transfer of the enterprise after the expiration of the contract should be stipulated. For example, at the end of the concession term, the concessionaire is obliged to return to the local government free of charge and in normal working condition all infrastructure facilities and equipment that are integral parts of the property complex. Infrastructure and equipment financed by the concessionaire should also be returned to the local government and, if not already fully depreciated, the concessionaire should be compensated, the amount of which is determined on a contractual basis or as a result of an assessment, taking into account, in particular, depreciation amounts.

1. Contract for the transfer of a municipal enterprise to a concession.
2. Providing guarantees for the transfer of the city's share in the financing of budgetary funds.
3. Enterprise management. Financing of capital investments.
4. Transfer of the city's share in capital investments.
5. Approval of tariffs. Control.
6. Provision of services.
7. Payment for services.
8. Return on investment and profit.

Peculiarities. The enterprise is transferred to the concession as a property complex. The concessionaire is engaged in both the production and sale of services. In order to attract investors, the city takes part in the financing of capital investments.

Advantages. The possibility of holding a tender for the right to finance the reconstruction and management of the enterprise, which allows you to select a concessionaire offering more low prices for your services. Reduced budget spending.

Flaws. The need to organize a tender by the administration, which is complicated by the fact that at present there is a limited circle of potential contestants due to the high level of monopolization of production in the field of public services.

Application. Main conditions discussed during the transfer of the municipal unitary enterprise "Vodokanal" to the concession

Are common economic conditions and term of the contract: definition of the concession, term of the contract, obligations of the parties.

The subject and volume of the concession: the composition of the property complex - enterprises, the rights to serve consumers-subscribers, the definition of the territory covered by the concession.

Customer service: service regulations, application for connection, regulation of consumer relations, control of activities by consumers, contracts with third parties.

Personnel Management: service staff, representatives of the concessionaire.

Infrastructure and equipment: general principles, preventive and repair work, obligation to carry out preventive work, connection to the network, meters, overhaul, increase in capacity and expansion of networks, extension of communications at the request of consumers, the right of the concessionaire to exercise control.

Determination of prices: prices and base rates(water supply, sanitation, other services), price fluctuations, control over the fulfillment of financial conditions.

Price revision and price change formula: revision and indexation of prices for water supply services (water disposal, other services), revision procedure.

Taxes: taxes, additional payments and fees.

Guarantees, Sanctions and Arbitration Clauses: Security Bonds, Financial Sanctions and Penalties, Enforcement Sanctions: Provisional Control, Dispute Resolution and Governing Law.

Termination of the contract: transfer of the property complex at the end of the contract, continuity of service after the end of the contract, return of equipment, return of property, personnel of the enterprise.

Specifications

Description of the water supply company: inventory of property transferred to the concessionaire, transfer of equipment upon entry into force of the agreement, transfer of newly commissioned equipment during the period of the agreement, special conditions.

Operations: production and supply of services, sources of water supply and places of discharge Wastewater, regulations and quality standards, volume and quality of services provided, meters, checking meters, taking readings from them, fire safety.

Construction and engineering work: conditions for carrying out construction and engineering work, work performed by the concessionaire, work at municipal and public infrastructure facilities, control over the execution of work entrusted to the concessionaire.

Reporting: annual reports, technical reports, financial reports, income statement, control by local authorities.

Services for the transfer of an enterprise to concession: scheme, contract, terms and conditions