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Toll Roads: Bruno Le Maire wants to shorten the duration of the concessions, which are more profitable than expected

Recognizing that the calculations of profitability of the highway concessions “had not been good” when they were carried out in 2006, the economy minister also wants a “tariff review clause based on the level of profitability” to be included in the contracts.

The government sued the Conseil d’Etat de quelle manière il serait possible de raccourcir “de quelques années” la durée des concessions de certain sociétés autoroutières, qui ont été more profitable than prévu, to indicate ce mercedi le minister de l’Economie Bruno Mayor. He admitted to the National Assembly’s Finance and Sustainable Development committees that shareholder return calculations going back to the privatization of highways in 2006 “had not been good.”

After a sharp fall in interest rates, the concession companies, in particular Vinci, Eiffage and the Spanish Abertis, were able to repay their participation at a lower cost, improving their profitability even as toll rates continued to rise regularly in accordance with the contracts concluded. with the State “We have made a mistake”, acknowledged the minister, before pointing out that the recent rise in interest rates would undoubtedly force us to redo the calculations. Wanting to “avoid any rental”, Bruno Le Maire plans to “shorten the duration of the concessions (…) by a few years”.

“This is the path that seems to us to be the most legally sound and economically most promising,” he added. Hence the referral to the Council of State. The delegated minister of Transport Clément Beaune specified that the lawyers of the Royal Palace should also study “all the fiscal options”, intending the Government to put the highway companies to contribute to finance the effort announced on the railway.

“Toll Rate Review Clause”

Bruno Le Maire also wants, as the Transport Regulatory Authority (ART) suggested, that the new contracts be shorter and that they include “a clause to review the toll rates according to the level of profitability.” The two ministers did not hide their preference for a renewal of the current concession model -certainly adjusted-, Bruno Le Maire rejecting any renationalization of the highways which, according to him, would cost taxpayers between 40 and 50,000 million euros.

While the main current concessions, which cover more than 90% of the highways granted, will expire between 2031 and 2036, Clément Beaune has announced the organization of “Highway Meetings” for the summer. “All questions will be asked about the future of the concessions,” he said.

Author: LP with AFP
Source: BFM TV

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