Dynamite PPP road toll agreement hidden by outgoing government

The Socialist Government says that the outgoing administration did not pass it the file, the one about the public having to pay for more tolls.

A new concession contract with Infrastructure Portugal, which the previous government knew all about but kept hidden, includes the June 2016 introduction of tolls on roads ‘that look like motorways,’ notably sections of the A3 and A4 in Oporto area with an income of €15 million a year, and many others.

Contracts are expected to begin to be as early as next summer with the documents showing that, in case there is no way to install tolls charging equipment, the toll fees will be taken straight out of the State Budget. This will have huge implications for the public accounts.

The intention by the Passos Coelho (pictured) government also was to maintain the principle of its beloved public-private partnerships PPPs which in this case is yet another fairytale scheme where the government, aka the taxpayer, guarantees toll payments to a company whether or not anyone used the roads in question.
 
Questioned by TVI, Infraestruturas de Portugal said that it "does not comment on any internal working documents with preliminary negotiations," but these documents are not preliminary nor should they be internal.
 
More weasel words from the group created by the merger of Estradas de Portugal and the national rail network company Refer, "The definition of toll policy is not within the jurisdiction of Infraestruturas de Portugal and therefore it has no jurisdiction to that decision."

When, in June this year the two companies merged ‘on cost saving grounds’ the Passos Coelho government’s idea was to pave the way for privatisation. The current Socialist government is looking at unwinding the companies, one part of its election pledges.
 
These damaging new documents show that the ‘investment’ in the company between 2020 and 2099, as well as operating costs, would be the taxpayers’ responsibility even if the company is sold off, with the revenue which includes tolls and the ‘road contribution’ charged on fuel purchases, guaranteed to the company until 2099 (sic). The lucky shareholders will have zero commercial risk.

This news has not filtered through to the current government yet as the files were kept well away from prying eyes and would have been explosive if revealed in the pre-election period.

When the files are released, and are discussed in parliament, MPs rightly will demand to know how yet another cosy deal at vast public expense, one that offers shareholders profits on a plate delivered by the struggling Portuguese taxpayer, was ever signed and how much it will cost to unravel.

The former Secretary of State for Transport, Sérgio Monteiro, is said to maintain 'a good relationship' with António Ramalho, the head of Infraestruturas de Portugal.

You must be a registered user to make comments.
Please register here to post your comments.