Legal Analysis of the Public Service Concessions in Mexico

Public service is a state activity that can be delegated to individuals. Concessions in Mexico are the acts of the Federal Public Administration, by which the granting authority, under its control, temporarily entrusts an individual with the provision of public service at the expense and risk of the concessionaire, having the right to obtain a consideration through the fees received from users.

 

 

What is a state concession?

 

 

    1. The concessions of public service and provision of services in Mexico are granted through an administrative contract, by which an individual or legal person, private or public, is entrusted by the State the organization and operation of a public service or provision of some service for a specified time.

 

 

What is a state concession?

  

    1. The persons called "concessionaires" act at their own cost and risk, receiving the corresponding remuneration for their work, which may consist of the price paid by users or subsidies and guarantees granted by the State, or both at the same time.

  

Where is this figure legally envisaged?

 

 

 

Concessions in Mexico, through an administrative act, it is the right that the concessionaire has to exploit any resources owned by the State. The goods, property of the State, are categorized as private enjoyment or use in the public domain such as waters, mines, or mountains.

 

Concessions in Mexico can be concluded in advance:

 

  1. Revocation
  2. Expiration
  3. Recovery
  4. Resignation
  5. Bankruptcy
  6. Death



Or in the normal form of extinction:

 

  1. Deadline compliance 

 

The article 28 of our State Constitution establishes that in cases of general interest, the provision of public services or the use and exploitation of property owned by the Federation can be granted, with some exceptions. In this, modalities and conditions are established to ensure the efficiency of the provision of services and the social use of goods, avoiding concentration phenomena that contravene the public interest.

 

It is also considered that the waters of the territorial seas are property of the Nation, in the extension and terms established by International Law; the inland marine waters; those of lagoons and inland lakes of natural formation that are directly linked to constant currents; those of rivers and their direct or indirect tributaries, etc. The same that for the use and exploitation of the resources in question, can be expropriated by individuals or by companies incorporated under Mexican law, through concessions granted by the Federal Executive.

 

What are the legal effects of concessions?

 

The legal effects are:

 

  1. To grant the appropriation and benefit of public domain assets to the concessionaires.
  2. To force the concessionaire to carry out the necessary work for the exploitation of the concessioned matter, and to pay the contribution established in each case.

 

What are the requirements to be a concessionaire?

 

To be a concessionaire it is required:

 

  1. To be Mexican, and to preferably live close to the municipality or region where the property in the public domain is located.
  2. To be financially solvent.
  3. To be in full exercise of rights.
  4. In case of being a legal person, to be duly constituted.
  5. To comply with the particular regulations established by each state.

 

What are the restrictions to be a concessionaire?


The impediments for becoming a concessionaire are:

 

  1. To be a federal, state, or municipal public servant.
  2. To be a spouse, blood relative in a direct line, collateral up to the fourth degree of the public servant who determines the granting of the concession.


There are currently 25,267 concessions prevailing in Mexico, with a surface area of ​​52.6 million acres, that is, 10.6% of the surface of the national territory. In Quintana Roo, it is the State Congress faculty  to approve or reject the concessions granted by the executive.

 

Definitely, the concessions topic in Mexico is a very broad subject, and of course, as citizens, we should not oppose them; on the contrary, they are a State and Country support, we just have to make sure each concession is legally granted and under the guidelines established by the constitution, states or municipalities.



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Sources: 

 

  1. http://www.enciclopedia-juridica.com/d/concesi%C3%B3n-de-servicio-p%C3%BAblico/concesi%C3%B3n-de-servicio-p%C3%BAblico.htm
  2. http://www.diputados.gob.mx/LeyesBiblio/pdf/1_110321.pdf
  3. https://www.indetec.gob.mx/delivery?srv=0&sl=3&path=/biblioteca/Especiales/150_Regimen_Juridico_Concesion_Mexico.pdf
  4. https://aristeguinoticias.com/2412/mexico/revela-amlo-que-calderon-concesiono-35-5-millones-de-hectareas-a-mineras/

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