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A Concession Agreement gives a private company the right to operate public assets or provide public services for a set period. In Singapore, these agreements are common for major infrastructure projects like expressways, power plants, and waste management facilities - letting private firms build and run them while the government maintains ownership.

These contracts spell out key terms like operating standards, revenue sharing, maintenance duties, and what happens when the agreement ends. Under Singapore's Public Private Partnership framework, concession periods typically run 20-30 years, giving companies enough time to recover their investment while ensuring public interests stay protected through government oversight.

Consider using a Concession Agreement when your company wants to take on large-scale public infrastructure projects in Singapore. These agreements work particularly well for complex developments like airports, highways, or public transport systems where private expertise can benefit public services while managing substantial investment risks.

The timing is right for a Concession Agreement when you need to establish clear operational control over public assets, secure long-term revenue streams, and define maintenance responsibilities. It's especially valuable when dealing with Singapore's regulatory bodies like the Land Transport Authority or Maritime Port Authority, as it creates a solid framework for public-private collaboration.

• Build-Operate-Transfer (BOT): Used for major infrastructure like expressways or power plants, where private companies construct and manage facilities before transferring them back to the government
• Design-Build-Finance-Operate (DBFO): Common for complex projects like airports or seaports, combining design and financing responsibilities with operational control
• Operations & Maintenance: Focuses purely on running existing facilities, popular for public transport systems and utilities
• Revenue-Share: Emphasizes profit-sharing arrangements, typically used for commercial developments like shopping complexes in transport hubs

• Government Agencies: Statutory boards like the Land Transport Authority or Maritime Port Authority represent public interests and set key terms
• Private Companies: Infrastructure developers, transport operators, or utility providers who invest in and operate the concession projects
• Legal Teams: Corporate lawyers and government legal officers who draft, review, and negotiate agreement terms
• Project Managers: Oversee day-to-day operations and ensure compliance with concession terms
• Financial Institutions: Banks and investors who provide project financing and monitor financial performance

• Project Scope: Define the infrastructure or service details, timelines, and technical specifications clearly
• Financial Model: Calculate investment costs, revenue projections, and proposed profit-sharing arrangements
• Regulatory Approvals: Identify required permits and licenses from Singapore authorities
• Performance Standards: Outline service quality metrics, maintenance requirements, and reporting obligations
• Risk Assessment: Document potential operational, financial, and legal risks with mitigation strategies
• Exit Strategy: Plan handover procedures, asset transfer terms, and end-of-term conditions

• Parties and Project Scope: Clear identification of parties and detailed description of the concession project
• Duration and Terms: Specific concession period, renewal conditions, and termination rights
• Financial Provisions: Revenue sharing, tariff structures, and payment mechanisms
• Performance Standards: Service quality requirements, maintenance obligations, and KPIs
• Risk Allocation: Clear distribution of operational, financial, and legal risks
• Governing Law: Singapore law clause and dispute resolution procedures
• Asset Transfer: Handover conditions and procedures at concession end

A Concession Agreement differs significantly from an Asset Purchase Agreement in several key ways. While both involve large-scale transactions, they serve distinct purposes in Singapore's infrastructure and business landscape.

• Ownership Structure: Concession Agreements let private companies operate public assets while the government retains ownership; Asset Purchase Agreements transfer full ownership permanently
• Duration: Concession Agreements typically run for 20-30 years with specific end dates; Asset Purchase Agreements represent permanent transfers
• Government Involvement: Concession Agreements maintain ongoing government oversight and regulation; Asset Purchase Agreements generally end government control after the sale
• Operating Requirements: Concession Agreements include detailed service standards and public interest provisions; Asset Purchase Agreements focus mainly on the transfer terms and warranties