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What Is Operating Risk in Concessions (Betriebsrisiko, Germany)?
This is a German procurement term. The economic risk of use that, in a concession, is borne by the concessionaire.
What is Betriebsrisiko?
The risk that the concessionaire's revenue from exploiting the works or service does not cover its costs. The concessionaire bears it; the grantor does not guarantee a return.
Why does it matter?
Because it is what distinguishes a concession from a public contract. If the buyer bears the risk, the arrangement is a contract and the VgV applies rather than the KonzVgV.
Does the whole risk have to be transferred?
A substantial part of it. The concessionaire must be exposed to real market risk, even if the grantor shares some of it.
