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Government has yet to start 'summer toll reduction' talks

4812In April this year, the government said that toll rates on the Algarve’s A22 ‘Via do Infante’ motorway would drop "this summer" to ease the burden on the alternative EN125 which is undergoing major roadworks.

Other formerly free SCUT roads also would benefit from toll reductions and that negotiations would ensure all the affected roads would have tolls reduced at the same time.

On June 23rd this year, the Minister of Planning and Infrastructure, Pedro Marques, said "There is a formal negotiation that has to be developed with the concessionaire (Scutvias) of the A23 road," which gave many the impression that he had started this process.

While anti toll organisations busied themselves with details of the percentage drop that could be expected, all were fooled by Marques that he was deep in conversation with the Scutvias management, indeed Marques had complained that he was 'terribly tired' due to the complexity of the talks.

This was all news to the Scutvias’ management, its directors have not entered into any discussions with the minister and can not explain his assertion that he was tired as it has yet to start the formal process of negotiating changes to the contract in force.

Marques mow has said to parliament that he already had made informal contact with the A23 concession holder “and we are waiting for a reply, still informal, and then we can proceed to the formal negotiation," - thus guaranteeing the required degree of slothful progress.

As stated previously in this organ, the government has no need, incentive or desire to drop the tolls and it fears the lost revenue will have to be made up by central State funds. The government also sees much of the toll income coming from the drivers of foreign registered vehicles entering and leaving the country who, as they do not have a vote, can be charged without fear of electoral backlash.

By failing to open formal talks with Scutvias, the minister is blocking progress on all the other Scut roads covered by the toll reduction pledge.

The reason the A23 is the key road that will unlock the toll reduction programme is the charging model used and the government’s reluctance a. to have this discussed openly and b. the cost to the exchequer of making up the difference between the current and new toll rates.

The government also is ignoring a report from Infraestruturas de Portugal which concluded that a drop in toll prices on certain roads will create an overall increase in toll revenue.

The analysis showed that for the Algarve’s motorway and Beira Interior’s A23, the rise in revenue makes reducing the toll rates a sound business decision and with a reduction of just 15%, the SCUT roads each would yield around €5 million in additional income per year.

Pedro Marques still sticks to a “during the summer” toll reduction date but few believe this already vague target is feasible or even on the cards.

The last talks Scutvias was involved in with the government took place in November 2015 when the Passos Coelho administration was engaged in renegotiation of the ruinous PPP contracts.

The company has confirmed that nothing has changed since then and as formal toll negotiations have yet to begin, there is no way any reductions will be in place in the next two months.

The Government has avoided discussion about the cost of the toll reductions, despite the programme being a pre-election pledge by incoming Prime Minister António Costa, and has ignored the Infraestruturas de Portugal report predicting a €22 million annual increase in post-reduction toll revenue.   

There seems little more that the anti-tolls organisations can do if the minister in charge is determined to delay for as long as possible the toll reduction negotiations.

In the Algarve, the Via do Infante users group, CUVI, continues to protest, highlighting the shocking death toll on the EN125 and the economic effects the unilateral decision to introduce tolls has had on the regional economy.

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