Concession Contracts Regulations

Nathan Holden, Freeths, Nottingham

Concession Contracts Regulations

The new Concession Contracts Regulations are due to come into force in April this year.  The new Regulation will apply to all concession contracts with a value (measured by turnover) of more than € 5,225,000 (£4,104,394).  Concession contracts typically involve the granting by one party to another of a right for a fixed period to exploit for commercial purposes works or the provision of a service.  For example, in the local government context, the right to run and operate a car park in return for retaining the income generated.

The draft Regulations were consulted upon in August/September 2015 and the Government has yet to publish the outcome of that process.  The approach taken in drafting the Regulations was to follow the lead taken in the context of the Public Contracts Regulation 2015, that is, to follow the drafting of the parent Directive as closely as possible.  On this basis it seems likely that the draft Regulations will largely remain as drafted between now and when they come into force.

An area that was not addressed by the draft Regulations, is what will happen with respect to procurement processes that have already started at the time the new Regulations come into force – see Part 7.  The drafting of that section of the drafting has yet to be completed.

If you are interested in how the Regulations will apply in practice please see the attached flow diagram Concession Contract Regulations flowchart – S Begum Jan 16