Título IX

For purposes of this Law, concession means the power that the State grants to private parties, so that at their own account and risk they build, produce, assemble, install, improve, make additions to, preserve, restore and administer a public work, property or service, under the control of the granting public entity, with or without occupation of public property, in exchange for remuneration that the private party charges to the users of the work, property or service.

The minimum obligations of the State are to obtain the rights to the concessioned services, to take over the service on grounds of public utility, such as deficient service, excessive price increases or due to force majeure or fortuitous event, to review the rates and ensure that those are the rates charged, and to supervise performance of the concession until its expiry.

The ministerial office or offices, or the superior authority of the autonomous or decentralized entity under whose jurisdiction the services in question are provided or are to be provided, shall issue a decision describing in detail the scope, characteristics, means and objectives of the services whose provision by third parties, on behalf of the State or its autonomous and decentralized entities, is intended to be carried out.

Services in which the State, autonomous and decentralized entities currently obtain profits may not be granted under concession.

The concession terminates by: expiry of the time limit, rescission in the cases established in the respective contract, or revocation through the Executive subject to consideration and possible approval by the Congress of the Republic.

The concession shall be awarded, upon prior compliance with the bidding procedure determined by this law insofar as applicable, and may not avail itself of the exception cases contemplated therein. The contract shall be entered into between the head of the Ministry or the highest authority of the corresponding entity and the concessionaire. Both the original concessions and their extensions shall be submitted through the Executive for consideration and possible approval by the Congress of the Republic.

of application. Administrative Litigation.

In addition to the clauses inherent to an administrative contract, in concession contracts the following shall be stipulated:

1.That the term of duration may not exceed twenty-five (25) years. The term shall be calculated in each case, according to the amount and importance of the investment, taking into account the national interest and that of the users.

2.That the regulation for the use of the work, property or provision of the service forms part of the contract.

3.That the concessionaire is obligated:

3.1 To the payment of the wages and benefits of its workers, who must preferably be Guatemalans in the proportion prescribed in the Labor Code.

3.2 To the conservation of all the property and elements comprising the concession, and to provide the service with the agreed continuity.

3.3 That upon expiry of the concession, all constructions and installations shall pass to the ownership of the State or of the autonomous or decentralized entity concerned without having to reimburse, compensate or pay any sum of money.

3.4 To be liable for damage and losses caused to the State or to third parties by reason of the exploitation of the concession.

3.5 To the training of the Guatemalan personnel designated by the competent authority.

3.6 To the payment to the State of a percentage to be determined in the decision granting the concession.

3.7 To allow the conduct of the audits that the competent authority considers necessary.

3.8 To be liable for the loss or deterioration of the State property delivered to it for the exploitation of the concession.

3.9 To the other conditions that, in accordance with the nature of the concession, it is necessary to stipulate in the contract, in the judgment of the competent authority.

The concession regime established in this chapter shall govern in all cases in which there is no other specific law containing concession rules for special areas.