Concession

A concession is a contract with a government body through which a legal entity (concessionaire) acquires the right, upon payment of a fee to the state, to economically exploit natural resources and other assets that are legally designated as being of public interest. Additionally, a concession may grant the concessionaire the right to perform an activity of public interest or the right to use facilities and equipment for performing that activity.

In the area of public interest protection, concessions have often been used for the exploitation of natural resources, such as minerals, water, or energy resources, to ensure responsible management of these resources and their sustainability. Concessions can also be granted for the provision of public services, such as transportation, water supply, waste management, or other services essential to society.

In the process of granting concessions and managing resources that are the subject of concessions, it is important to ensure transparency, integrity, and accountability to protect the public interest. This is particularly important because concessions can have long-term consequences for the environment, society, and the economy.

The role of civil society in relation to concessions is crucial to ensure that the concession granting processes are fair, transparent, and in accordance with the law. Civil society can oversee the concession granting process, provide expert opinions and recommendations, and encourage accountability of government bodies and concessionaires in fulfilling obligations towards the public interest.

The management of concessions in Bosnia and Herzegovina is characterized by a complex institutional framework and inconsistent legislation at the entity and cantonal levels, creating room for non-transparent and corrupt practices. Concessions are often granted without adequate public debate, economic analyses, and oversight, which can lead to abuses and harmful contracts against the public interest. For example, TI BiH filed a criminal complaint against those responsible in the Government of the Central Bosnia Canton for failing to initiate procedures for collecting claims from concessionaires amounting to 1.7 million KM. Despite non-payment of obligations, contracts were not terminated, and the relevant ministries did not initiate collection procedures, leading to significant damage to public revenues.

Transparency International in Bosnia and Herzegovina advocates for the establishment of a unified concession register, tightening of criteria for granting, and strengthening oversight of the implementation of concession contracts to ensure transparency, accountability, and protection of public resources.