ABSTRACT
This chapter examines the generation of revenue from franchises, concessions and privatisation. Franchises and concessions are contractual arrangements where governments can earn revenue by carrying out the production of goods or the provision of services in a regulated market or from the use of public assets. Concessions consist of contracts where a business entity is granted rights over the assets of a public authority. Additional forms of public sector revenue that originate from assets take the form of licences. A typical feature of licences issued by public authorities is that the use or ownership of the asset, or the carrying out of the activity, is not allowed without the licence, and mechanisms of enforcement are put into place to detect violations. Public assets and state-owned enterprises (SOEs) may also be privatised through public sales of ownership shares. The details of how privatisation is conducted play an important role in the generation of public sector revenue.
