Portugal renegotiates PPP contracts

 

Portugal’s economy Minister, Pires de Lima has declared that the government has completed a deal to renegotiate six PPP contracts across the country, to deliver billions of euros in savings.

 

He said the new contracts in these six concessions represent savings to the public purse of €2bn, "a reduction of excess rents unprecedented in our history".

 

The renegotiation includes six highways: Northern Interior, Coastal and High Borders, the Silver Coast, North, Greater Lisbon and Porto.

 

The minister further told that by the end of the current legislature, 14 contracts in total should be renegotiated. "The renegotiation should ensure savings of over €7.2bn in the 14 concessions," he added.

 

Like neighbouring Spain, Portugal’s highway projects were hit hard by the global financial crisis, as the number of users dramatically decreased thereby significantly reducing toll revenues.

 

However, the country has begun returning to the PPP market. Earlier this month, the City of Coimbra tendered a car park PPP.