While motorway prices are expected to rise by 4.75% in February 2023, a report from the Finance Inspectorate, revealed on Wednesday by The chained Duck, wondered, from 2021, about the “much higher than expected profitability” of the two largest concessionaires, ASF-Escota (Vinci group) and APRR-Area (Eiffage), which operate two-thirds of the French motorway network. Profitability “close to 12%”, says the satirical newspaper, while the state was aiming for 7.67% during privatization in 2006.
This 65-page study had been commissioned by Minister Bruno Le Maire from the General Inspectorate of Finance and the inspection service of the Ministry of Ecology in the context of a dispute with the SCAs, following the vote in the 2020 finance bill of an increase in the land use planning tax (TAT).
In the Finance Inspectorate’s report, the experts mention three hypotheses to return to the objectives set at the origin of the contract: either an early end to the concessions; i.e. a 58 to 59% reduction in tariffs; ie the collection by the State of more than 63% of the gross operating surplus generated by the two largest groups until the end of the concessions.
The opposition rises
However, only the proposal “of an early end” of the concessions concerned is retained as “legally possible”, writes the Duck. The Ministry, questioned by West France, affirms on the contrary that none of the tracks envisaged by the report, including that of a massive reduction in the price of tolls, holds legally. “I’m asking for a commission of inquiry into this scandal! Stop racketeering!” Reacted the Insoumis deputy Bastien Lachaud, while the socialist Boris Vallaud demanded to see the famous report, which Bercy refused because of business secrecy.
On Thursday January 26, the Transport Regulatory Authority (ART) precisely submitted a new report estimating at 7.8% in 2021 the internal rate of return of the historical companies, of which APRR and AREA are part. That year, the net income of the concession companies thus reached 3.9 billion euros. If the ART supports the concession system, judging “virtuous” the logic of making users pay because it “secures the financing necessary for the maintenance of the infrastructure and the maintenance of a high level of quality of service” , while ensuring a framework for expenditure, the authority nevertheless considers that the model has “weaknesses”.
“It is indeed characterized by long contracts, due to significant initial investments, but also multiple extensions, which confers an essential position on the actors in place and generates negotiations that are often unbalanced for the benefit of the concessionaires”, she writes. . “Shorter contracts, lasting around 20 years, would be desirable”, compared to around 70 years for historical concessions, she suggests, recommending “to regulate their renegotiation more strictly”, today hui “operated outside any competitive discipline”.
Negotiations “very favorable to motorway companies”
“The original sin is the contracts”, emphasizes nearby Evening centrist senator Vincent Delahaye, rapporteur for a commission of inquiry in 2020 on the SCAs. He denounces the conditions of the privatization in 2006 and the renegotiation in 2015 – “very favorable to motorway companies” – led by Ségolène Royal and Emmanuel Macron, respectively Minister of Ecology and Economy at the time. The elected official pleads for the organization of a round table where the financial balances would be discussed, as the Minister of Transport, Clément Beaune, would have undertaken.
Italy and Spain have chosen to terminate the concessions before their term, but ART does not recommend following this path. It will soon be possible to renegotiate these contracts since between 2031 and 2036, the seven main concessions (mainly operated by Eiffage, Vinci and the Spanish company Abertis), which represent more than 90% of the network conceded by the State, will finally reach their term.