A VIRTUOUS CONCESSION MODEL
A demanding, cost-effective system
APRR undertakes to comply with the terms of the agreements defined by the State. In return, APRR receives the revenue from toll payments. These serve to finance work to maintain and modernise the network, as well as reimbursing the debt that was transferred when the motorways were privatised in 2006.
When the concession agreements expire (in 2035 for APRR and 2036 for AREA), the concession operators will return the motorway networks thus developed, improved and debt-free to the State, receiving nothing further in exchange.
The concession model has allowed France to have a quality network covering the whole country at a substantial saving for the State, as the network is financed by users rather than taxpayers.
Guaranteed revenue and supervision for the French State
The obligations of the motorway operators are set out in the concession agreements. The State also decides on investments complementary to the initial concession agreements, through multi-year plan contracts or specific investment plans. Under this framework, APRR invested €4.2 billion from 2006 to 2021, and has committed to devote more than €200 million a year on average to the network in the next few years.
In recent years, the motorway regeneration plan signed in 2015 and the plan signed at the end of 2018 represented more than €900 million of investments for APRR and AREA, on top of the approximately €150 million average spent annually on major maintenance of the networks (road surfaces, works of art, environment, etc.)
APRR performs its roles under the constant supervision of the public authorities, which oversee compliance with performance and quality indicators relating to its services and infrastructures.
Fair prices for users
It is the network’s users, of all nationalities, that fund the network, not taxpayers as a whole. Thanks to the “user pays” principle, a large part of the network’s external costs (environmental protection, noise abatement and safety improvements, etc.) is paid by the people who actually use it.
The State determines the rules for toll increases based on the additional capital expenditure and works requested of the concession operators. It checks and validates the tariffs applied for each toll section every year.
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APRR’S ROLE AS DEVELOPER
APRR invests to maintain and modernise the network and to improve its safety. Road maintenance, resurfacing and improvements to safety and user information: APRR maintains and improves the assets entrusted to it by the State in order to offer an ever safer and more comfortable motorway system with innovative services that evolve to meet its customers’ needs.
MOTORWAY REGENERATION PLAN
On 9 April 2015, the concession operators and the French government agreed a motorway regeneration plan involving a total investment of €3.2 billion. The aim of this plan is to modernise the motorway networks while supporting employment in the public works and service sectors.
2014-2018 Management Contracts
The concession contracts agreed by the French government and APRR in 2001 are supplemented by two five-year management contracts, one concerning APRR, the other AREA. These contracts stipulate the investment in the network required from the Group in exchange for new toll pricing formulas that were introduced in 2014 and will remain in force until 2018.