The Concession Contracts (Scotland) Regulations 2016

Termination of concession contract

47.—(1) A contracting entity must ensure that every concession contract which is awarded contains provision enabling the contracting entity to terminate the concession if—

(a) the concession contract has been subject to a substantial modification which would have required a procurement for the award of a concession contract in accordance with regulation 46(9) (modification of concession contracts during contract term);

(b) the concessionaire has, at the time of contract award, been in one of the situations referred to in regulation 40(1) (exclusion grounds) including as a result of the application of regulation 40(2) and should therefore have been excluded from the procurement for the award of a concession contract; or

(c) the Court of Justice of the European Union finds, in a procedure pursuant to Article 258 of the TFEU, that the United Kingdom failed to fulfil its obligations under the Treaties by virtue of the fact that the concession granted awarded the concession contract without complying with its obligations under the Treaties and the Concession Contracts Directive.

(2) The provision may address the basis on which the power is to be exercisable in those circumstances, for example by providing for notice of termination to be given and by addressing consequential matters that will or might arise from the termination.

(3) To the extent that a concession contract does not contain provision enabling the contracting entity to terminate the concession contract on any of the grounds mentioned in paragraph (1), a power for the contracting entity to do so on giving notice to the concessionaire is an implied term of that concession contract.