Concession Contracts

Concession Contracts

Energy and water distribution networks are part of the backbone of every municipal infrastructure and they are of particular significance for the local stakeholders. It is in the municipalities’ own interest to ensure ongoing operation of the networks at the best possible conditions for the population. The legislator’s intention was that in the areas of electricity and gas this should be achieved through competitions for the award of licence contracts. For this purpose, the legislature and the courts produced an increasingly complex special procurement right. Similarly, municipalities often procure drinking and waste water supplies from external providers under licence contracts. Here, too, the award of the corresponding contracts is subject to complex legal requirements.

BBG und Partner assist municipalities across Germany in all phases of awarding new licence contracts and implementing them. This regards identifying opportunities and risks, and options for possible remunicipalisation, drafting, reviewing, and negotiating licence contracts, and drafting, preparing and implementing any necessary selection procedures. If the procedure or the award of contracts is challenged in court, we represent the municipalities’ interests using all legal means. We also advise and represent energy and water supply companies as interested parties or bidders in negotiations for licence contracts, in the selection procedure, for instance by appraising the procedural documents, by drafting queries and complaints, and in any ensuing court proceedings.

When providing legal advice, we can draw on the expertise available in our law firm in related and accompanying areas of law such as energy, antitrust, corporate and environmental law, so that we can provide you with solutions from a single source, even at short notice. BBG und Partner has a network of cooperation partners in the fields of auditing, tax consultation and engineering, which we can call upon on request.