Service concession arrangements

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Service Concession Arrangements (SCAs) allow governments to enter into an agreement with another legally separate governmental or private sector entity in which the external entity, the operator, provides public services through the use of the asset, collecting related fees in return for an up-front payment to the transferring government. This allows the government to generate revenue and cash flows from their capital assets and possibly improve the efficiency of public services. Under an SCA, the government essentially transfers the rights and obligations of an asset to the external entity. What two measures help protect a government from failure on a contractor's part to comply with the terms and specifications of such an agreement? Describe each measure and its primary purpose. Be sure to note your source and in-text citation in APA format.

Reference no: EM131672566

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