Concessions and Privatization

Concessions and privatization are concepts related to the management of public assets or services. Concessions involve the government granting a private company the right to operate a service or facility—like a highway or airport—while typically still owning it, in exchange for fees or revenue sharing. Privatization, on the other hand, means transferring ownership of public assets or services outright to private companies, often aiming to improve efficiency and reduce government costs. Both strategies involve private sector participation but differ in their level of ownership transfer and operational control.