Financing Portugal's road network

Following a government decision, a new model for the management and financing of the road infrastructures sector was defined in 2007 and is now being implemented. The national road agency (Estradas de Portugal or EP, EPE) was transformed into a state-owned public company, Estradas de Portugal, SA (EP, SA), and a new body, the Institute for Road Infrastructures (InIR), was created with public functions of regulation and supervision of road infrastructures.
February 14, 2012 Read time: 3 mins

Following a government decision, a new model for the management and financing of the road infrastructures sector was defined in 2007 and is now being implemented

The national road agency (1410 Estradas de Portugal or EP, EPE) was transformed into a state-owned public company, Estradas de Portugal, SA (EP, SA), and a new body, the Institute for Road Infrastructures (1411 InIR), was created with public functions of regulation and supervision of road infrastructures.

InIR is now the Portuguese national road authority, and aims to ensure greater transparency and cautioning in the relationship between the EP, SA and the state.

EP, SA is just like a public limited company (plc), but the single shareholder is the Portuguese Republic, while InIR's main mission is to oversee the management and operation of the road network; to check the application of laws and regulations, the concession and sub-concession contracts, always having in mind the need to ensure the implementation of the National Road Plan, as well as ensure the efficiency, equity, quality and safety of the road infrastructures.

EP, SA is now a concessionary company, focused on the conception, design, construction, financing, maintenance, operation, upgrading and enlargement of the national road network, under a 75-year concession contract between it and the state.

Almerindo Marques, EP, SA president, said that under the new model, EP, SA is the only concessionaire.

"Now we have to complete the National Road Plan because it is missing about 2,000km and this new sub-concessions programme includes 2,200km of roads and of these 1,000km are new roads. A large part of these sub-concessions are roads that are already built. They will be included in the sub-concession as 'operate and maintain' roads." The company will rely on PPPs (sub-concessions) for the development of key projects.

At InIR, João Sousa Marques, vice president, admitted that negotiations with concessionaires to transfer contracts from the state to the EP, SA had not always been completely successful.

"We have under our supervision 16 concessions both old and new. It must be difficult to move from one good contract with the state to one with a private company," he said.

"We have a contract to complete the road network by 2012. When this is done about 95% of all traffic will be running on the network." In a nutshell, and by the end of my visit to Portugal, I could well understand what CRP (Portuguese Road Centre) executive vice president António Pinelo told me on arrival: "I am confident that after our meetings with stakeholders you will realise why Portugal was selected as the venue for the 16th 2462 IRF (International Road Federation) World Meeting [25-28 May]."
Highway & Network Management

For more information on companies in this article

Related Content

  • Roads for Regional Enhancement
    November 1, 2012
    IRF once more broke ground by gathering over 600 regional transport officials for the world's first comprehensive review of sustainable transport solutions in the context of the Andean Region. Lima, Peru, an important regional crossroads for trade and a hub for engineering know-how, offered an ideal backdrop for the Congress. The event offered a comprehensive panorama of design, construction, and maintenance solutions adapted to the region's exceptionally complex topography. Geological and climatic conside
    Read More
  • Via Nordica turns international
    July 31, 2012
    Via Nordica, the road technology conference of the five Nordic countries (Denmark, Finland, Iceland, Norway and Sweden) has changed from the traditional Nordic event to become more international The conference, held every four years, rotates between the five countries, and the 2008 event, held in Helsinki, the Finnish capital, was a clear demonstration of the international trend. An accompanying exhibition attracted more than 70 companies and organisations from 14 countries. Pär-Håkan Appel, the secretary g
    Read More
  • The European Union Road Federation (ERF) calls for EU Member States to prioritise road maintenance
    June 26, 2014
    The European Union Road Federation (ERF) has put out an “urgent” call for “EU Member States to prioritise road maintenance” as neglected surfaces continue to deteriorate and the potholes grow larger and larger. ERF wants the EU to “put alternative financing mechanisms into place” as soon as possible, to tackle what it sees as a growing road safety crisis across the region. At its first ERF biennial Symposium on Road Infrastructure Challenges in June, more than 100 stakeholders heard the ERF demand the “ope
    Read More
  • Ethiopia’s challenging cement market: consumption stimulation
    January 26, 2018
    Ethiopia’s cement industry has enjoyed substantial growth in the past decade. However, challenges linked to the government’s investment policy could erode these gains, as Shem Oirere reports With nearly 16.5 million tonnes of cement capacity and 10% average growth in annual consumption, Ethiopia is among the top cement producers in sub-Saharan Africa. Only Nigeria and South Africa rival it.
    Read More

Highlighted Content