eprintid: 3165
rev_number: 16
eprint_status: archive
userid: 1903
dir: disk0/00/00/31/65
datestamp: 2010-05-31 10:57:50
lastmod: 2018-04-17 15:33:23
status_changed: 2010-05-31 10:57:50
type: conference_item
metadata_visibility: show
item_issues_count: 0
creators_name: Vassallo Magro, José Manuel
creators_name: Sánchez Soliño, Antonio
title: Subordinated Public Participation Loans for Financing Motorway concessions in Spain.
ispublished: pub
subjects: construccion
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 in order to increase the attractiveness of concessions. This paper deals with a new public support mechanism for concession contracts, called Subordinated Public Participation Loans (SPPLs), which has been implemented in Spain during the last 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 defined in such a way that the increase in interest accrued will reflect the traffic level: the larger the traffic the larger will be the SPPL yield. SPPLs have a twofold goal. First, they increase the financial attractiveness, and hence the feasibility, of concessions contracts. And second, they set up a fairer risksharing approach between the public and the private sector. This paper analyzes the implications of SPPLs in motorway concessions by contrasting the theoretical analysis with the empirical results obtained form the tender of five motorway concessions in Spain. Overall we found that the implementation of this mechanism may be considered a success. In spite of that, we propose some measures that may contribute to improving the SPPL performance in the future.
date: 2008
date_type: published
publisher: Paris School of Economics (PSE)
official_url: http://www.pse.ens.fr/axes/medad/ICFTI3-JT10-Digital_Program/Papers/VassalloSanchez-Solino2008.pdf
full_text_status: public
pres_type: paper
place_of_pub: Paris
event_title: Third International Conference on Funding Transport Infrastructure, 10th 'Journée Transport'
event_location: París
event_dates: 19/06/2008-20/06/2008
event_type: conference
institution: Caminos
department: Ingenieria_Civil8
refereed: TRUE
book_title: Third International Conference on Funding Transport Infrastructure, 10th 'Journée Transport'
rights: by-nc-nd
citation:   Vassallo Magro, José Manuel and Sánchez Soliño, Antonio  (2008).  Subordinated Public Participation Loans for Financing Motorway concessions in Spain..  In: "Third International Conference on Funding Transport Infrastructure, 10th 'Journée Transport'", 19/06/2008-20/06/2008, París.    
document_url: https://oa.upm.es/3165/1/INVE_MEM_2008_53427.pdf