Concession Notice

A Concession Notice opens a competition governed by Directive 2014/23/EU, which covers the award of concession contracts rather than conventional public supply, works, or services contracts. The defining feature of a concession is the transfer of operating risk to the concessionaire.

What is a Concession Notice?

Under Directive 2014/23/EU, a concession is a contract by which a contracting authority or utility grants a right to exploit works or services, where the concessionaire's remuneration comes principally from the right to exploit the works or services (and thus from end users or the market) rather than from direct payment by the authority. The transfer of substantial operating risk distinguishes a concession from a conventional public contract; if the authority bears the risk, the contract is a standard public works or services contract, not a concession.

Typical concession structures include motorway toll operators, airport concessionaires, parking facility operators, and waste management operators who generate revenue from user charges. The concession threshold under the 2014/23/EU Directive is EUR 5.38 million (as updated periodically by the Commission), above which publication on TED is mandatory.

A Concession Notice serves the same function as a Contract Notice for a standard procurement: it announces the competition publicly, sets out the subject matter, the selection criteria (which under concession rules are lighter than for public contracts), and the time limit for submitting applications. The procedure rules for concessions are deliberately less prescriptive than for public contracts, giving authorities more flexibility in how they structure the selection process.

Under eForms, the Concession Notice maps to specific notice subtypes. The award outcome is published in a Concession Award Notice.

Why Concession Notices matter for bidders

Concession contracts are often large, long-term, and strategically significant. Because the concessionaire takes on revenue risk, concessions attract suppliers who can manage demand uncertainty and have the financial strength to sustain operations during low-revenue periods. Spotting Concession Notices early is important because these competitions often involve pre-qualification rounds and lengthy negotiation phases, making early engagement critical.

Concession markets across Europe include transport infrastructure, waste management, energy distribution, ports, and recreational facilities. For suppliers active in these sectors, monitoring Concession Notices on TED provides a structured pipeline of major long-term contract opportunities.

Example

A Portuguese motorway authority publishes a Concession Notice on TED for the operation and maintenance of a 120km motorway network for 30 years, with the concessionaire entitled to collect tolls. The notice invites applications from consortia with demonstrated experience in motorway operations and minimum financial capacity of EUR 50 million in annual revenue. Three international infrastructure consortia submit applications. After evaluation, two are invited to submit detailed bids.

Frequently Asked Questions

What is the difference between a concession and a public contract?

The key difference is operating risk. In a public contract, the authority pays the supplier and bears the risk of demand fluctuations. In a concession, the concessionaire earns revenue from exploiting the works or service (typically from end users), and bears the risk that demand may be lower than projected. Both directive regimes require transparency through TED publication above their respective thresholds.

Are concession rules the same across Europe?

Directive 2014/23/EU is transposed into national law by each EU member state, so there are some national variations in detailed rules. Norway, Iceland, and Liechtenstein have equivalent rules under their EEA commitments. The UK has equivalent concession provisions under the Procurement Act 2023, though with some differences in threshold and procedure.

How long are concession contracts typically?

Concession durations vary widely. The Directive requires that concessions are not granted for an indefinite period and that the term is limited to what is needed for the concessionaire to recover its investments. Long concessions (20-30 years) are common for infrastructure involving substantial capital investment.