Observatorio de I+D+i UPM

Memorias de investigación
Research Publications in journals:
Subordinated Public Participation Loans for Financing Toll Highway Concessions in Spain
Year:2007
Research Areas
  • Transport,
  • Town and country planning
Information
Abstract
Budgetary constraints are prompting many governments to encourage private financing of transportation infrastructure through concession contracts. The length and complexity of such contracts often force governments to provide fiscal support to increase the attractiveness of concessions. This paper deals with a new public support mechanism for concession contracts, called a subordinated public participation loan (SPPL), which has been implemented in Spain during the past few years. SPPLs are subordinated loans that may be given by the government to the concessionaire if the latter requests them in the tender. SPPLs are structured such that the increase in interest accrued will reflect the traffic level: the greater the level of traffic, the larger the SPPL yield. SPPLs have a twofold goal. First, they increase the financial attractiveness and, hence, the feasibility of concessions contracts. Second, they establish a more fair risk-sharing approach between the public and the private sector. This paper analyzes the implications of SPPLs for highway concessions by contrasting theoretical analysis with empirical results obtained from the tender of five such highway concessions in Spain. Overall, the authors have found that the implementation of this mechanism can be considered a success. However, some measures that may contribute to improving SPPL performance are proposed.
International
Si
JCR
No
Title
TRANSPORTATION
ISBN
0361 - 1981
Impact factor JCR
1,242
Impact info
Volume
1996
Journal number
0
From page
1
To page
9
Month
SIN MES
Ranking
Participants
  • Autor: ANTONIO SANCHEZ SOLIÑO
  • Autor: Jose Manuel Vassallo Magro (UPM)
Research Group, Departaments and Institutes related
  • Creador: Grupo de Investigación: Investigación en Planificación del Transporte
  • Departamento: Ingeniería Civil: Transportes
  • Centro o Instituto I+D+i: Centro de Investigación del Transporte
S2i 2020 Observatorio de investigación @ UPM con la colaboración del Consejo Social UPM
Cofinanciación del MINECO en el marco del Programa INNCIDE 2011 (OTR-2011-0236)
Cofinanciación del MINECO en el marco del Programa INNPACTO (IPT-020000-2010-22)