What is the
concession contracts regulation
Also known as: Directive 2014/23/EU
The concession contracts regulation sets the rules for how public authorities award contracts where the contractor is paid not through a fixed fee, but by the right to commercially exploit the works or services delivered. Think of it as the difference between hiring someone to run a cafeteria (a regular contract) and granting someone the right to operate the cafeteria and earn revenue from sales (a concession).
How do concession contracts work?
At the EU/EEA level, concession contracts are governed by Directive 2014/23/EU, adopted in 2014 and applied across the EEA from 2016. The directive covers both works concessions and services concessions. The defining feature of a concession is that the operating risk is transferred to the contractor — meaning the contractor is not guaranteed to recover their investment or operating costs.
When a concession contract exceeds the EEA threshold value of €5,382,000 (2024–2026), the competition must be published via TED. Unlike standard procurement procedures, the directive does not prescribe specific procedures. Contracting authorities have significant flexibility in how they structure the competition, provided they uphold the principles of equal treatment, transparency, and proportionality.
Common examples of concession contracts
- Parking facility operations — the contractor earns revenue from parking fees
- Cafeteria management — the contractor earns from food sales to staff and visitors
- Sports venue operation — the contractor generates income from ticket sales and rentals
- Toll road projects — the contractor finances construction and earns from tolls
Concession contracts should generally not exceed five years, unless the contractor needs longer to recoup their investment. Tools like Cobrief make it easier to discover concession contract notices published across the EEA.
The concession contracts regulation exists alongside the main public tender rules to address the unique risk profile of concessions. Complaints about concession award criteria and procedures can be filed with national review bodies. For contractors considering concession contracts, understanding that the operating risk — and therefore both the potential for profit and loss — rests with them is essential.