Project finance — Checklist for concession contract

Introductory note:
A concession contract governs the relationship between the host government (or governmental authority) and the project company.
Many projects involve some sort of collaboration between the private sector and the public sector. Depending on the structure of the project, the private sector may take responsibility for scoping, designing, financing, constructing and/or operating a project. Often, though, the government in the country where the project is located (the “host government”) will also have to, or want to, be involved in the project to some extent.
In many cases, a project will not be legally or financially viable without host government support. Such support is usually given by a number of concessions (in other words, privileges) granted to the sponsor of the project and/or the project company (the “project entities”).
This checklist is a good starting point for key issues that should be addressed by the provisions in a concession contract.