The Government has decided unilaterally terminate the contract of concession of the C-25, the Eix Transversal, In order to save an average of about 70 million year or 810.4 million until 2040, the year in which the exploitation expires; and an amount equivalent to the cost it has had in the last 14 years. The Ministry of Economy has already sent a communication in this sense to Cedinsamajority-controlled by the French fund Vauban Infrastructure Partners, which has 10 days to present allegations in a process that can last from 8 to 10 months, according to government sources. From next January 1, maintenance will be carried out by the Administration.
The infrastructure, rescued in 2010 through a 50 million loan from the Generalitat, was carried out using the shadow toll, which consists of payment to the concessionaire based on the vehicles that pass through the road and the established rates. The outstanding balance of this loan is 32 million euros.
The Catalan Executive bases its decision on the “window of opportunity” offered by the concession contract in its clause number 16. This section provides for the possibility of unilaterally rescinding the contract by the Administration in exchange for a reversal price. From the Catalan administration they consider “the largest in about 10 or 12 years”after the fiasco of the privatization of Aigües Ter Llobregat (ATLL), currently back in public hands under the ATL brand.
reversal price
The central government has authorized it to be carried out through Bank financing. Economy opened a call and have presented at least two entities. In any case, authorization has also been requested to do so charged to the Regional Liquidity Fund. (FLA) of 2021 not arranged and that this year it is necessary to return or compensate, for which there is verbal approval, but not yet in writing. The advantage is that this instrument for the autonomies has an interest rate of 0.109%. The maximum reversal price (payable to dealer) upgraded is 482.6 million. In any case, the operation will initially be carried out with its own treasury.
By applying this contractual break, the Government estimates that more than 800 million will be saved until the expiration date set forth in the contract, on June 23, 2040. Between 2008 and 2021, the Catalan administration has paid 819.5 million euros for this concession , which includes both the shadow tolls and the anticipated subsidies that were paid out in the first few years. The concession contract, which began in 2007 when the concessionaire was made up of FCC, Copisa, Copcisa and Comsa, was rewritten after the rescue in 2010, provided three possible early ruling dates: 2017, 2022 and 2027, years 10, 15 and 20 of the concession.
This infrastructure the Generalitat was added to the balance sheet by mandate of the General State Intervention (IGAE) in 2015, considering that the risk requirements from 2007 to 2015 as public-private collaboration were not met. It was integrated as a non-financial asset and the liability is recorded as a loan with an interest of 5%. As of December 31 of this year, Economy estimates that the value of the asset and the loan attributed to the Generalitat will amount to 354.2 million.
Tax rules suspended
The reversal price is the one corresponding to the 5% rate in the July 16, 2010 contract: 221.94 million with a net asset value as of January 1, 2007 until the end of the resolution of 482.6 million. The operation would an impact on the deficit of the Generalitat this year of 128 million, the result of the difference between the value of 482 million compared to 354 million. In Economics, this impact is relativized given that the tax rules are suspended in 2022, with authorization from Brussels, which makes it easier to carry out the operation. In treasury, the 32 million net balance of Cedinsa’s pending credit will have to be subtracted from the 482 million, so the net impact will not be greater than 450 million.
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The difference in terms of deficit between waiting until the end of the concession in 18 years or this year varies between 825 million and 347 million, with which the improvement is almost 481 million. In terms of cash, the estimated saving is 430.2 million and in current terms, 810.4 million.
Cedinsa has already communicated that it was opposed to the operation, but although it challenges it, it is not paralyzed, according to Executive sources. The Government has opinions from the offices Garrigues Y Juneent Rock that support the operation.