The minister admitted that the calculations of profitability for shareholders, which date back to the privatization of the motorways in 2006, had “not been good”.
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An unusual request. The government has asked the Council of State how it would be possible to shorten “a few years” the duration of certain concessions of motorway companies, which have been more profitable than expected, announced Wednesday, March 22, the Minister of the Economy, Bruno Le Maire. He also recognized before the Finance and Sustainable Development Committees of the National Assembly that the calculations made at the time (which go back to the privatization of the motorways in 2006), had “not been good”.
“We were wrong”
Interest rates having fallen sharply, concessionary companies such as Vinci, Eiffage or the Spanish Abertis, were able to repay their stake at a lower cost. This had the effect of improving their profitability, while toll rates continued to increase regularly, in accordance with the contracts concluded with the State. “We were wrong”acknowledged the Minister, before noting that the current rise in interest rates would no doubt require us to redo the calculations.
He announced the publication on Wednesday evening of a report from the General Inspectorate of Finance (IGF) for February 2021 which points to the profits made by ASF-Escota (Vinci) and AREE-Area (Eiffage). He goes so far as to mention the possibility of reducing their toll rates by almost 60% for “realign (their) profitability” with what was planned in 2006.
“A strong political will” necessary
The text, however, does not judge “legally possible” than a shortening of the duration of the concessions. Which, according to its authors, “assumes a strong political will and would result in a deterioration of relations between the State and the SCAs”, motorway concession companies. The 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 on September 30, 2026 for APRR 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”, says the report. Hence the referral to the Council of State.
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