France considering changes in motorway operator contracts

The French Government is in the process of making changes in contracts with motorway operators, which it considers to be too generous.

Economy minister Emmanuel Macron will submit a new bill next month that could include changes to the formula to calculate toll-road tariffs.

The minister has also promised to set up a new authority that would regulate the sector better. Reuters reported that a parliamentary report on the motorway concessions to provide more clues on future reforms will also be released.

The news agency also reported that the French competition watchdog released a report in September, which said that the motorway-operators’ profitability rates of up to 24% could not be justified by the costs they have to bear or the risks they face.

The authority has recommended a €3.2bn motorway upgrade package after responding to a request for recommendations by the National Assembly’s finance committee. Aimed at serving the interests of the state and road users, this package has been approved by the European Commission.

According to this plan, companies such as Eiffage, Vinci and Abertis unit SANEF will bear the cost of upgrading French motorways in exchange for an average three-year extension of their concessions.

Strict agreements protect companies such as Eiffage or Vinci, which operate the 9,000km of France’s motorways and could be provided compensation for any changes in the contracts.

Last week, France’s Terra Nova think tank suggested a tax on parent companies of motorway operators by arguing in support of a 50%reduction in French toll road tariffs.

Reuters stated that in the past, a change in the tax scheme has always been compensated through toll price hikes or through increasing the length of the concessions.

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Image: The French Government is considering bringing about changes to contracts with motorway operators. Photo: courtesy of Arnaudus.