A governmental authorization granted to a private sector investor pursuant to which the private sector investor has the right to either:

At the end of the concession term, the project reverts to the control and management of the government until a new concession is issued. Depending on the project and its jurisdiction, the concession can take the form of a lease, agreement, license, permit, or mining title. A concession is generally long term (in some cases as long as 99 years) in order to give the private sector investor sufficient time to recoup its investment.

Concessions are typically used to develop infrastructure projects such as airports, roads, bridges, highways, ports, hospitals and water treatment facilities.

For more information on concessions, see Practice Notes, Negotiating Concession Agreements for Public Infrastructure Projects and Public Private Partnerships: Issues and Considerations and Article, Public Private Partnerships: an Answer to the Infrastructure Needs of the United States.