Highways: finally found a modus vivendi
No tariff adjustment is expected in 2015. In contrast, the concession period will be extended by 2 years. The agreement allows both parties to come out on top of this case, after 7 months of complicated negotiations.
After seven months of rather complicated negotiations where financial and political interests of each other have largely interposed an agreement has finally been found. As mentioned by the Prime Minister Manuel Valls from yesterday, there will be no tariff adjustment in 2015. And the smoothing is not expected in 2016. However, the state has agreed to extend two year term of the concession granted to various companies such as Vinci, Eiffage and Abertis. This agreement will further unlock the highway stimulus investment plan of 3.2 billion euros expected in the privatization
This should reduce the dispute between the State and the concessionaires, since the Competition Authority had pointed profitability levels "exorbitant" of the latter. Levels of the first applicants had strongly contested explaining that their business model is not appreciated in the light of the criteria. Since then, discussions had intensified to try to find a solution acceptable to everyone.
With the agreement signed today, politicians can claim to have postponed for two years a rate increase, the motorway companies, they will succeed to get back on their feet with the lengthening of the duration of the concession. There have also boosted during Vinci and Abertis, especially who has won more than 7% in stride. The release of the stimulus plan of 3.2 billion is as much a good news for construction companies who were looking forward to this white smoke. See now how these agreements will actually be implemented.
