Compensation on Termination

The possibility of compensation in the case of premature contract termination is a significant risk mitigation factor for concessionaires, enabling them to finance debt at favorable interest rates. If a concessionaire is unable to maintain a facility, a request can be made to the government to terminate the concession agreement. If this happens, the government assumes the management and operation rights of the facility. The method of calculating payment and the causes for termination must be specified in the concession agreement.