Abertis will invest €147 Mn in France in exchange for tariff hike

AbertisS&P raises outlook on Abertis

Spanish infrastructure concessionary Abertis said Sanef, its French subsidiary, has reached an agreement with the French government to implement a new €147 million investment programme to modernise its network. The company will invest this amount in various projects in exchange for an increase in tariffs of between 0.27% (Sanef) and 0.4% (Sapn) a year from 2019 to 2021. Abertis flagged that this plan will allow it to modernise its network in line with four basic premises: to improve security, traffic flow, quality of service and environmental sustainability.

The plan has precedents like the Paquet Vert (2010-2013) and the Plan Relance, approved in 2015 and currently being implemented. It is yet another example of the French government’s willingness to choose public-private collaboration, the aim of which is to favour short-term private investment in public assets, offering a return over various years.

The news on Abertis comes days after the group made a further bet on the French market, raising its stake by 10.5% to 63.07% in Holding d’Infraestructures de Transport (HIT), which fully owns Sanef.

According to ACF, this latest news is positive as it strengthens the commitment the company has made to the French government to finance the development of infrastructures in the country.

Abertis has been present in France since 2006 through its stake in HIT. France is its biggest market, contributing 35% of total revenues (1.243 billion euros).

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.