Bidding for Roads: the Portuguese Experience



Bidding for Roads: the Portuguese Experience

Authors

FERNANDES C, CESUR and Ministry of Public Works, Portugal

Description

Portugal, as the majority of the developed countries, faces a expanding global demand for transport infrastructures and, in particular, for roads. In spite of considerable funds have been invested in the road network for the last 15 years a considerable b

Abstract

Portugal, as the majority of the developed countries, faces a expanding global demand for transport infrastructures and, in particular, for roads. In spite of considerable funds have been invested in the road network for the last 15 years a considerable backlog in the standard of its roads, with respect to most European countries, still exists.

The budgetary and public debt restrictions imposed by the entry into the European Single Currency don't permit an acceleration of the flow of public money for road investments. The Government has adopted a strategy for the participation of private investors in order to complete the motorway network in a reasonable period of time.

It's expectable that the private participation might anticipate in 15 years the conclusion of the Portuguese road network.

This participation is being made in two types of concessions: real tolls and shadow tolls. This paper presents the essential facts of the background and develops the main components of that strategy.

In parallel we will try to demonstrate that this strategy presents advantages over the traditional scenario where highways had been viewed as public goods that should be financed, and most of the times, operated by the public sector.

Publisher

Association for European Transport