What is a Subconcessionary?

A subconcessionary is a person or entity that is granted a subconcession, which is a contractual agreement between the concessionaire and a third party to provide specific services or perform specific tasks within the scope of the concession. In other words, a subconcessionary is a subcontractor who provides services or performs tasks under the main concession agreement.

For example, if a company has been awarded a concession to operate a toll road, it may enter into subconcession agreements with other companies to provide specific services such as maintenance, traffic management, or construction. These subconcessionaries would be responsible for providing these services within the scope of the main concession agreement, and would be paid by the concessionaire for their work.

Subconcessionary agreements are commonly used in large infrastructure projects where a single company may not have the resources or expertise to provide all of the necessary services. By entering into subconcession agreements, the concessionaire can tap into the expertise and resources of other companies to ensure that the project is completed successfully.