A concession agreement is a contract entered into by the grantor on one side and the concessionaire on the other side, containing provisions regarding their mutual rights and obligations related to the use of the granted concession. A concession is the right to carry out economic activities using natural resources, goods in public use, and the performance of activities of public interest as determined by this law. The grantor or concessioner, through relevant ministries, conducts the concession allocation procedure or concludes a concession agreement. The concessionaire is a legal entity established in accordance with the special laws of the Federation or a foreign entity to which the concession is granted, and which executes the concession agreement in accordance with this law. The concessionaire is a legally domestic or foreign entity registered to carry out economic activities with which the grantor concludes a concession agreement and which has rights and obligations determined by the contract in accordance with this Law. The concessionaire has the right to possess and use the assets and property provided by the grantor in accordance with the concession agreement. The concessionaire is obliged to carry out the activity determined as the subject of the concession in the concession agreement and cannot expand it beyond the scope determined by the concession agreement.
The concession agreement must necessarily include: 1) Contracting parties, 2) Subject of the concession, 3) Amount of the concession fee, 4) Measures for financial security of the contract, 5) Rights and obligations of the contracting parties, 6) Concessionaire’s obligations in the field of environmental protection, 7) Obligation to revitalize renewable natural resources, 8) Obligation to register the Concession Agreement in the land register, 9) Concessionaire’s obligation to assume all risks of harmful consequences arising from the use of the concession right, 10) Actions related to obtaining the necessary authorizations for conducting activities in accordance with the concession agreement, 11) Investment conditions, 12) Assets and property provided by the grantor, 13) Land use concessions, 14) Conditions, methods, and time of using the subject of the concession, 15) Conditions for contract renewal, 16) Concessionaire’s handling of items found during the use of the concession object, 17) Concessionaire’s actions in case further use of the concession object would endanger a significant site, 18) Measures to enable project financing, 19) Description of events considered force majeure, 20) Determination and adjustment of tariffs, 21) Sanctions and compensation for non-fulfillment of contractual obligations by the contracting parties, 22) Procedure in case of impossibility to fulfill the contract, for which neither party is responsible, 23) Termination of the contract and the procedure in case of termination of the contract before the expiration date determined by the contract, 24) Method of dispute resolution, including international arbitration if the contracting parties agree on it, 25) Contracted court jurisdiction, and 26) Other elements essential to the subject of the concession.
This Law Office successfully represents the Concessionaire in connection with the Concession Agreement for the design, construction, use, and transfer (electricity production activity) from December 30, 2021. They are well-versed in the rights and obligations of the Concessionaire and the Grantor during the term of the concession agreement.
If you need legal advice in Sarajevo on the topic of the Concession Agreement in Bosnia and Herzegovina – Rights and Obligations of the Concessionaire and the Grantor – as an individual, company, member of a company, director, or founder, or if you need a corporate lawyer for your company or business idea, you are in the right place. You can contact our corporate lawyers directly by phone (+387 62 342 463), WhatsApp, Viber, or email (rasid@haracic.ba).
