A concession feels like ownership because the cash flows last a long time. It is a license. The public authority keeps the underlying asset and writes the rules for how you may earn from it.

Start at the end of the file

Handback conditions, performance deductions, and termination for public interest decide the value of the last years. A concession that must be returned in like-new condition has a capex bill the early yield does not show. Put that bill in the model before you believe the IRR.

Find who can change the tariff

Indexation, regulatory resets, and competing facilities authorized by the same authority can move revenue without a default by you. If the grantor can reopen price, your contract is a negotiation with a calendar.

Read a concession as a list of ways the right can shrink. The cash flow is what remains after that list.