What if motorway company concessions were reduced? The government asked the Council of State how it would be possible to shorten “by a few years” the duration of the concessions of certain motorway companies, which have been more profitable than expected, indicated Wednesday, March 22 the Minister of the Economy, Bruno Le Maire. The latter admitted before the Finance and Sustainable Development Committees of the National Assembly that the calculations of profitability for the shareholders made during the privatization of the motorways in 2006 had “not been good”.
Interest rates have fallen sharplythe concession companies – in particular Vinci, Eiffage and the Spanish company Abertis – were able to repay their outlay at a lower cost, improving their profitability accordingly, while toll rates continued to increase regularly in accordance with the contracts concluded with the State.
The Minister announced the publication on Wednesday March 22 of a report by the General Inspectorate of Finance (IGF) from February 2021 – recently found by The chained Duck – which points to the profits made by ASF-Escota (Vinci) and AREE-Area (Eiffage), and goes so far as to mention the possibility of reducing their toll rates by almost 60% to “realign (their) profitability” with which was planned in 2006.
The text, however, does not judge”legally possible“a shortening of the duration of concessions, which according to its authors “requires strong political will and would result in a deterioration of relations between the State and the SCAs”, the motorway concession companies.
No renationalization
This report envisages an early end to the concessions on April 30, 2026 for ASF and Escota, i.e. a shortening of ten and five and a half years respectively, and at September 30, 2026 for APPR and Area, i.e. a shortening of nine and ten years. The State would run “the risk that the judge considers the profitability of the concessions to be reasonable and their early termination as entailing a right to compensation”, specifies the report. Hence the referral to the Council of State.
The Minister Delegate for Transport, Clément Beaune, noted that the lawyers of the Royal Palace should also study “all tax options”, the government intending to put the motorway companies to contribute to finance the announced effort on the rail. Mr. Le Maire also wants, as suggested by the Transport Regulatory Authority (ART), that the new contracts be shorter, and include “a clause for revising toll rates according to the level of profitability”.
The two ministers made no secret of their preference on Wednesday March 22 for a renewal of the current concession model – certainly fitted out -, Mr. Le Maire rejecting any renationalization of the motorways which, according to him, would cost between 40 and 50 billion euros to the taxpayer.
While the main current concessions, covering more than 90% of the motorways conceded, must be completed between 2031 and 2036, Mr. Beaune announced the organization of “Assises des autoroutes” by the summer. “All questions will be asked about the future of concessions,” he guaranteed.
