New €5 billion investment highway plan revealed by Spanish Prime Minister Mariano Rajoy.
The slump in high speed train construction work and the lack of highway improvement projects has led to the volume of infrastructure investment in Spain fall below 2% of GDP, according to analysts at Bankinter.
The first tier of the programme will be obtaining investment from the construction companies to undertake these highway projects. This enables the government to not only find construction companies to actually carry out the work but also free up public funds for maintenance work on the projects once they are complete.
The second tier will require investment in collaboration with a more ambitious private initiative, which will include a programme for high speed rail works and another for water infrastructure works.
The ‘availability payment’ formula will be used to finance the projects; the concessionary company doesn’t charge a direct toll but a certain amount from the Administration according to certain standards of quality and services, reports Bankinter.Tags: Bankinter, Investment in Spain, Spanish Infrastructure