Investments determine the pace of development of a particular country. However, finding investors is not an easy task. First, the main enterprises of the national economy, as a rule, are state owned. Second, these are serious production facilities, the modernization and development of which require serious capital investments. The optimal solution in such a situation would be a concession agreement. This is one way to make investment in Belarus. To implement such projects, the Law “On Concessions” dated July 12, 2013 No. 63-Z is in force in the Republic of Belarus.

Investments determine the pace of development of a particular country. However, finding investors is not an easy task. First, the main enterprises of the national economy, as a rule, are state owned. Second, these are serious production facilities, the modernization and development of which require serious capital investments. The optimal solution in such a situation would be a concession agreement. This is one way to make investment in Belarus. To implement such projects, the Law “On Concessions” dated July 12, 2013 No. 63-Z is in force in the Republic of Belarus.

Concession agreement - briefly

A concession agreement is an understanding upon which the state cedes its property rights to a particular object or rights to certain types of activities to a private domestic or foreign company for a specified period. In return, it receives long-term investment in the national economy, efficient use of property and fulfillment of certain obligations. In simple terms, this is a partnership between state and business.

Concession agreement - parties

There are two parties involved in signing the agreement - the concedent and the concessionaire.

• The concedent is the state or its administrative-territorial unit, on whose behalf the concession authorities act;
• The concessionaire is the investor, with the exception of state legal entities.

An important point: the concessionaire does not have the right to transfer concession objects into subconcession, rent or lease, use them as collateral, etc.

Types of concession agreements

• Full concession agreement – the finished product belongs to the investor by right of ownership. He disposes of the result of production at his own discretion.
• Concession agreement on production sharing - manufactured goods are divided between the parties according to the concession agreement.
• Concession agreement on the specification of services (performance of work) – the manufactured products become completely the property of the state. The concessionaire receives remuneration either upon achieving certain indicators, or regardless of the result obtained. The terms of payment are specified in the concession agreement.

The maximum period for concluding a concession agreement is 99 years, unless other time frames relating to the concession object are specified by law. 

Concession objects

• Activities falling within the exclusive competence of the state: genetic engineering activities, production of toxic substances, activities for arranging and conducting lotteries, import of alcoholic beverages and tobacco products;
• Objects that are the exclusive property of the state - subsoil, water, forests or that are only owned by the state.

 The Republic of Belarus has defined a list of objects in respect of which a concession agreement can be made. We also recommend to review the terms and benefits of public-private partnership.

Conclusion of a concession agreement

Before signing a concession agreement, there is a certain procedure:

• The following information is posted in the media and the Internet: list of objects for concession, type of concession agreement and method of selecting a concessionaire;
• The concession authority is determined, the concession proposals are coordinated and approved;
• Conducting a competition or auction (as a rule, they are open), based on the results of which a concessionaire is selected. Closed competitions (auctions) are held for objects of strategic importance for the Republic of Belarus, or information about which constitutes state secrets. The list of such objects is not published.

The terms of the auction or competition may contain mandatory requirements: for example, new jobs, financing for infrastructure creation.

Despite the complexity of the procedure, the concession is beneficial to both parties. For the country, this is not only an influx of private investment into the economy, but also the effective use of public resources.

The benefit for business is access to resources and government guarantees. In addition, the concession agreement may provide benefits and preferences for investors or companies created by them in Belarus.

On our website you can review the objects that fall under the concession agreement. Using a special filter, you can select both the type of object and the region you need. If you have any questions, your personal manager will advise you and tell you about all the intricacies of concluding a concession agreement.

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