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Topic: Miscellaneous
Number of pages / Number of words: 4 / 859
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The private firms build the infrastructure project, operate it for the concession period at the end of which they transfer it to the state without compensation. All the income during the operating period goes to the contractors. If the period of concession is sufficiently long - the contractors have an interest to observe high standards of quality in order to minimize maintenance costs...


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If the period of concession is sufficiently long - the contractors have an interest to observe high standards of quality in order to minimize maintenance costs. The state (sometimes through "golden shares") maintains a say in certain operational aspects (such as tariffs of usage).

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