A service concession arrangement is an arrangement whereby a public sector body,
or a public benefit entity (the grantor) contracts with a private sector entity (the
operator) to construct (or upgrade), operate and maintain infrastructure assets for a
specified period of time (concession period). The operator is paid for its services over
the period of the arrangement. A common feature of a service concession arrangement
is the public service nature of the obligation undertaken by the operator, whereby the
arrangement contractually obliges the operator to provide services to, or on behalf of,
the grantor for the benefit of the public.