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

  • The ERF fully supports the PPRS Nice 2018
    May 16, 2017
    The first Pavement Preservation and Recycling Summit (PPRS) took place in Paris in February 2015. This event, with more than 1,000 participants, represented an essential milestone for the road community in Europe and beyond. With its impressive programme, it highlighted the necessity to better preserve and maintain road infrastructure and urban road networks, as fundamental support towards the mobility of people and goods. This event gave public and private stakeholders the opportunity to present a variety
    Read More
  • São Paulo calls US$1.6bn Tamoios highway PPP
    March 24, 2014
    Brazil's São Paulo state is due to call a tender by March 28 2014 to concession its Tamoios highway, a government official is reported to have told regional media. "Governor Geraldo Alckmin will be officially announcing the launch of the tender next week [Mar 24-28]," the official said last week without giving further details. Budgeted at US$1.61 billion (BRL 3.74 billion), the concession involves operating and maintaining the Planalto and Serra stretches of the Tamoios highway, also known as SP-99, which
    Read More
  • Europe's smart road pricing project
    April 12, 2012
    New trials pave the way for smart road pricing using Global Navigation Satellite Systems (GNSS). In recent years, the concept of road charging has been gaining acceptability among Europe's policymakers.
    Read More
  • Variable message signs aid parking, traffic control
    February 14, 2012
    From the highway to the parking space: message sign technology has proved that it simplifies wayfinding Variable message signs (VMS) are often located at key decision points on busy highways to help manage the network by providing advanced warning to drivers of emergencies and incidents. They are also used to warn drivers of events that may cause delays in the future such as road works and major events. An example comes from the USA where, to stimulate economies and refresh downtown areas, cities are build
    Read More

Highlighted Content