Concessionaire in Procurement Law 2026

Concessionaire: economic operator to whom the right to provide a works or services concession is transferred by a concession contract.

Definition: The concessionaire is the economic operator to whom the public grantor of a concession transfers, by way of a concession contract, the right to provide a works or services concession, to charge users or the general public for that purpose, and to bear the substantial economic operating risk in doing so.

Last updated: January 2026 · Legal status: Directive 2014/23/EU Article 5; BVergG 2018 § 188; GWB § 105; KonzVgV

What is a concessionaire?

The concessionaire is the private service provider in a concession relationship; it stands on the contractor's side and, with the concession, assumes the economic risk of operation. Unlike a classic contractor, which receives its remuneration directly from the contracting authority, the concessionaire typically finances itself through user charges levied from third parties (e.g. consumers, users).

The term concessionaire is not restricted to natural persons or particular legal forms. Concessionaires may be:

Private companies (limited company, public limited company, sole trader)
Consortia of bidders
Mixed-economy companies (with both public and private participation)

Rights and obligations of the concessionaire

Under the concession contract the concessionaire has both far-reaching rights and demanding obligations.

Rights

The right to exploit the concession commercially (e.g. operating a toll road, charging user fees)
The right to contract protection for the agreed term
The right to compensation in the event of early termination by the grantor of the concession

Obligations

Performance of the agreed service at the agreed quality
Compliance with statutory and contractual requirements (e.g. environmental requirements, service standards)
Investment obligations (in the case of works concessions: construction of the works)
Reporting obligations vis-à-vis the grantor of the concession
Return of the infrastructure at the end of the contract

Operating risk of the concessionaire

Operating risk is the defining feature of the concessionaire's position. The concessionaire must bear the risk that actual demand for the service falls short of expectations and that it cannot recoup its investment in full. Without genuine assumption of risk, there is no concession but rather a classic public contract.

Related terms

FAQ

Can the concessionaire award sub-concessions? This depends on the concession contract. The award of sub-concessions, or the full transfer of the concession to third parties, is frequently restricted by contract or subject to approval.

Does the concessionaire have procurement-law obligations when procuring services for the operation of the concession? Yes, where the concessionaire itself qualifies as a utilities contracting entity, or where it awards works contracts within the framework of the concession that exceed the threshold values, it may be subject to its own procurement-law obligations.

Last updated: January 2026 All information is provided without warranty. For legally binding advice, please consult a law firm specialising in procurement law.