Copying and distributing are prohibited without permission of the publisher
Elections create Portugal's latest PPP headache
28 July 2009
Despite difficult credit conditions a number of Portuguese toll road deals reached financial close during the first half of 2009. But the historical bane of Portuguese PPP – politics – has again frozen the deal flow.
By Michael Marray.
Read more:
[portugal infraco NPV opposition]
The poor showing by the Portuguese socialist party (PS) in the European Parliament elections in June has had an immediate effect on the PPP market, with a number of projects informally put on hold.
With national elections due in September the centre right PSD, which did well in the European elections, is casting an anxious eye over future budget deficits and public spending plans, and has pressed for road and rail projects to be delayed until after the election.
On hold are the Eu1.45 billion ($2.06 billion) high speed rail project running between Poceirao and Caia, and the remaining projects from a programme of seven toll roads, launched in 2007 by the current socialist government led by Prime Minister Jose Socrates. The roads include the Eu1.34 billion AE Centro highway, where a consortium led by Mota-Engil was judged to be running ahead of a rival bid from Dragados/Edifer....
Take a free website trial to read this article. It’s easy to get a trial – just follow this link or email info@projectfinancemagazine.com.
Or, if you’re a subscriber or have an active trial, simply log in below to read the article.
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Subscribe
Free trial
Taking a free trial will give you access to the latest news and analysis, as
well as the online deals database, BenchBase. Start your free trial today.
Free Trial