A concession agreement is typically the basis for a project that is a public private partnership, or PPP. It provides a concession to a private project company, to conduct a (semi-) governmental activity.

The following video explains typical features of a concession agreement, and explains how PPPs try to optimise for public goals, as well as private sector ones.

Optimisation of these terms, for both groups of stake holders, is probably one of main reasons why PPPs are so successful, and are applied in so many areas nowadays.