This procurement approach involves the long-term lease of existing, publicly-financed toll facilities to a private sector concessionaire for a prescribed concessions period during which they have the right to collect tolls on the facility. In exchange, the private partner must operate and maintain the facility and in some cases make improvements to it. The private partner must also pay an upfront concessions fee. Long-term leases are procured on a competitive basis, with awards going to the qualified bidder making the most attractive offer to the sponsoring agency. The most important criterion for the award of a long-term lease concessions is usually the amount of the concessions fee. Other criteria may include the length of the concessions period and the credit worthiness and professional qualifications of the bidders.
Long-Term Lease Concessions