Beach concessions: depreciated assets are included in the calculation of compensation, but unauthorised building works are not
The condition is that it must be of economic or functional benefit to the new entrant
The valuation report to assess the value of the beach concession must also take into account the value of depreciated assets if they are still usable, whilst any planning infringements, if present, must not be included in the calculation.
This is set out in the ‘Guidelines for estimating the compensation payable to concessionaires withdrawing from state-owned maritime concessions’, drawn up by the National Council of Chartered Accountants and Accounting Experts, published yesterday and which will form an integral part of of the standard tender notice currently being drawn up by the Ministry of Transport.
The purpose of these guidelines is to ensure consistency in assessment across the country by the appointed chartered accountants, whom the concessionaire is required by law to select from a shortlist of five candidates nominated by the President of the CNDCEC. The costs of the expert assessment are borne to the outgoing concessionaire who, according to the draft standard tender notice, may waive this cost, thereby forfeiting any compensation.
The guidelines provide key guidance on setting up the valuation framework and defining the valuation model.
Calculating compensation
The compensation must be calculated by taking into account two distinct components: the value of the investments net of any public subsidies and a fair return on the investments made over the last five years. Please note, however, that only those investments from which the incoming concessionaire can also derive economic benefits – including in the form of cost savings – are taken into account when calculating the compensation.
