The contractual form of a concession contract may also be used to grant transport rights for a longer period. For example, there is a concession contract between the French and British governments and two private companies on the Channel Tunnel. British Channel Tunnel Group Limited and France-Manche S.A. operate the Channel Tunnel, often referred to as “Chunnel” under this agreement. The tunnel connects the two countries and allows the transport of passengers and goods between them. It is 31.5 miles long, with 23.5 miles under the English Channel. The underwater tunnel is therefore the longest in the world and an important part of the public infrastructure. Muhammad Ali of Egypt used contracts called concessions to build cheap infrastructure – dams and railways – with foreign European companies seeking capital, building projects and recovering most of the operating revenue, but Ali`s government would provide some of that revenue.  For other examples of concessions, see Gibbons v.
Ogden and U.S. Rail Policy. Over the past decade, public spending on infrastructure in the United States has exceeded $400 billion per year1, and trends indicate that even greater investment will be needed to maintain and improve the aging of roads, bridges, ports, and airport infrastructure. Governments and public sector bodies looking for ways to outsource expensive public services are increasingly turning to service concession agreements. In a service concession agreement, a public body grants an operator the right (a concession) to operate an infrastructure asset and to collect and collect charges (e.g.B. Fees can be paid by users or directly by the government. For more information on service concessions, see Chapter 13 of pwC`s “Revenue from Customer Contracts” guide and check out our podcast. In the private sector, the owner of a concession – the concessionaire – usually pays either a fixed amount or a percentage of the income to the owner of the business from which he operates.
In the oil and gas industry, governments generally retain all rights to explore and exploit oil resources and to allow oil and gas companies to conduct various activities through oil licensing agreements. The exact licensing system varies from jurisdiction to jurisdiction, although there are common features found in most licensing systems. The licensing management system typically consists of a series of licensing cycles in which the exploration, development and production rights of certain geographic areas or “blocks” are awarded to bidders. For certain categories of activities, different types of licenses are usually awarded. As a result, governments generally grant separate licenses for exploration and production.