Concession
Also called: infrastructure concession, toll concession
A right granted by a government body to build and operate an asset, such as a toll road or port, and collect revenue from it for a fixed period.
A concession is valued as the present value of the cash it will generate over its remaining life. Key questions are how long is left, whether revenue depends on traffic or is fixed, how tariffs are set, and how the project's debt is serviced.
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