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The Concession Contracts Regulations 2016
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Changes over time for: Section 9
Version Superseded: 01/01/2024
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Point in time view as at 26/05/2023. This version of this provision has been superseded.
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The Concession Contracts Regulations 2016, Section 9 is up to date with all changes known to be in force on or before 20 July 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
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Threshold amounts and methods for calculating the estimated value of concession contractsE+W+N.I.
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Threshold amounts
9.—(1) These Regulations apply to concession contracts the value of which are equal to or greater than [F1£5,336,937].
F2(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Calculating the value of the concession contract
(3) For the purposes of paragraph (1), the value of a concession contract shall be the total turnover of the concessionaire generated over the duration of the contract, [F3inclusive] of value added tax, as estimated by the contracting authority or utility, in consideration for the works and services which are the object of the concession contract and for the supplies incidental to such works and services.
(4) That estimate shall be calculated as at the moment at which the concession notice is [F4submitted] for publication in accordance with regulation 33 or, in cases where such notice is not provided for, at the moment at which the contracting authority or utility commences the concession contract award procedure, for example by contacting economic operators in relation to the concession contract.
(5) But if the value as estimated at the time of the award is more than 20% higher than the estimate calculated in accordance with paragraph (4), the former shall be used for the purposes of this regulation.
(6) The estimated value of the concession contract shall be calculated using an objective method specified in the concession documents.
(7) When calculating the estimated value of the concession contract, contracting authorities and utilities shall, where applicable, take into account in particular—
(a)the value of any form of option and any extension of the duration of the concession contract;
(b)revenue from the payment of fees and fines by the users of the works or services other than those collected on behalf of the contracting authority or utility;
(c)payments or any other financial advantages, in any form, from the contracting authority or utility or any other public authority to the concessionaire, including compensation for compliance with a public service obligation and public investment subsidies;
(d)the value of grants or any other financial advantages, in any form, from third parties for the performance of the concession contract;
(e)revenue from sales of any assets which are part of the concession contract;
(f)the value of all the supplies and services that are made available to the concessionaire by the contracting authorities or utilities, provided that they are necessary for executing the works or providing the services;
(g)any prizes or payments to candidates or tenderers.
(8) The choice of the method used to calculate the estimated value of a concession contract shall not be made with the intention of excluding it from the scope of these Regulations.
(9) A concession contract shall not be subdivided with the effect of preventing it from falling within the scope of these Regulations, unless justified by objective reasons.
[F5(9A) If a contracting authority or a utility F6... is unable to estimate the value of a concession contract in accordance with this regulation, the estimated value of the concession contract inclusive of value added tax is deemed to be equal to the threshold amount in paragraph (1).]
Treatment of lots
(10) Where a proposed work or proposed provision of services may result in concession contracts being awarded in the form of separate lots, account shall be taken of the total estimated value of all such lots.
(11) Where the aggregate value of the lots is equal to or greater than the threshold mentioned in paragraph (1), these Regulations shall apply to the awarding of each lot.
Textual Amendments
F1Sum in reg. 9(1) substituted (1.1.2022) by The Public Procurement (Agreement on Government Procurement) (Thresholds) (Amendment) Regulations 2021 (S.I. 2021/1221), regs. 1(1), 4(2)(a) (with reg. 7)
F2Reg. 9(2) omitted (31.12.2020) by virtue of The Public Procurement (Amendment etc.) (EU Exit) Regulations 2020 (S.I. 2020/1319), regs. 1(2), 8(5)(b) (with Sch. paras. 3-5)
F3Word in reg. 9(3) substituted (1.1.2022) by The Public Procurement (Agreement on Government Procurement) (Thresholds) (Amendment) Regulations 2021 (S.I. 2021/1221), regs. 1(1), 4(2)(b) (with reg. 7)
F4Word in reg. 9(4) substituted (31.12.2020) by The Public Procurement (Amendment etc.) (EU Exit) Regulations 2020 (S.I. 2020/1319), regs. 1(2), 8(5)(c) (with Sch. paras. 3-5)
F5Reg. 9(9A) inserted (25.5.2023) by The Public Procurement (International Trade Agreements) (Amendment) Regulations 2023 (S.I. 2023/484), regs. 1(2), 3(3) (with reg. 5)
F6Words in reg. 9(9A) omitted (26.5.2023) by virtue of The Public Procurement (International Trade Agreements) (Amendment) (Wales) (No. 2) Regulations 2023 (S.I. 2023/567), regs. 1(2), 3(3) (with reg. 5)
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