In Portugal, ROADIS manages 272 km of highways in 2 concessions that connect major cities in the country; linking important tourist areas and facilitating connections between several main roads.
In Spain, we manage a 64-km concession on the A-4, a key highway that connects the centre and the south of the country. We are responsible for managing, maintaining and operating this asset.
Concessions
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A4: MADRID - OCAÑA
The company is responsible for maintaining and operating a stretch of the A-4, one of the main highways in Spain and the main transport artery between the centre and the south of the country. The concession started operating partially in 2010; and was fully operational as of 31 December 2011.
The highway is one of the main transport routes in the country and the Trans-European Transport Network which links Madrid with Castilla-La Mancha and Andalusia.
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AUTOESTRADA DO ATLÁNTICO
170 km of road, made up of 2 direct toll highways (A8 and A15); in the most important economic development corridor in Portugal, between Lisbon and Oporto. This concession manages one of the main access routes for drivers who enter the country's capital each day.
The concession contract includes the construction, financing, operation and maintenance of the A8 (Lisbon-Leiria) and the A15(Caldas de Rainha-Santarem). The concession was awarded in 1998. The project was progressively implemented, completing an existing network with new segments built until 2007.
A8: LISBOA - LEIRIA A15: CALDAS DE RAINHA - SANTAREM -
AUTOESTRADA DO LITORAL OESTE
102 km of different sections connecting the coast (Nazaré) with Portugal’s interior (Fátima and Ourém). Stretches of highways that connect one of the most important tourist areas in Portugal and facilitate the region’s connections with Portugal’s main north-south routes.
NAZARÉ - FÁTIMA Y OURÉM
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With regard to the COVID-19 pandemic, 2021 was a continuation of the precedent year.
Especially during the first half of the year, there were more lockdowns, curfews and mobility restrictions across Europe that affected traffic volume on our assets in the Madrid and Lisbon metropolitan areas.
Luckily, traffic volume increased by the end of 2021 thanks to the progress of vaccination and the de-escalation of restrictions that took place towards the second half of the year.
Our operational teams deployed on site once again showed their firm commitment to service continuity, being fully aware of the importance of mobility as a basic service.
In view of the reduced M&A activity on toll motorways, SBU Europe focused mainly on optimising the operation of its European assets.
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During 2021, the Eurozone experienced GDP growth of +5.2%, following the lifting of restrictions.
The Organisation for Economic Co-operation and Development (OECD) expected economic activity in the euro area to expand by 4.3% in 2022, and by 2.5% in 2023. However, by the end of 2021 other factors came into play that will probably have impact on those figures: chaos in the supply chain, rising energy prices and several geopolitical conflicts.
Economic growth and the aforementioned problems will in all likelihood produce a high inflation scenario during 2022, at least according to the latest research.
The main opportunities in the primary market are in countries with a broad portfolio of PPP projects:
- Germany has a portfolio of newly created projects that will be launched soon. Notable among them are the A1 Lotte/Osnab (Münster); A20 (Hamburg), and A44 (Dortmund) worth more than 2 billion euros, with availability payment systems.
- Greece has started the bidding process for Attiki Odos, the ring road of Athens, which has received significant support from several strategic and financial sponsors worth more than 2 billion euros.
- Some activity is also expected in Italy if soon-to-expire concessions are re-tendered.
Other countries with smaller but significant projects are Norway, France, Belgium and the Czech Republic.
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During 2021 the level of corporate transaction activity in the road sector was generally lower than initially expected.
Due to the multiple pandemic waves and uncertainties in the sector, some processes were deferred. That, in addition to a relatively active M&A market in 2018 and 2019, explains the low activity in the European market.
The most relevant deals closed during 2021 are:
- Greece: The privatisation of Egnatia Odos was awarded in September 2021 to a consortium formed by GEK TERNA and Egis Projects.
- France: In December 2021 Eiffage, by then already a shareholder, acquired a 35% stake from Sanef (Abertis) in the A65 motorway concession.
- Portugal: Vauban Infrastructure acquired the Baixo-Alentejo highway in southern Portugal.
- Spain: The Ausur process began by the end of 2021 and is pending closing.
- Italy: Activity increased thanks to several processes (Brebemi, Milano-Serravalle...)
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*(IN EUR M)A-420212020Traffic revenues16.710.9EBITDA11.89.1EBT2.5(0.2)Net income1.9(0.2)Operating CF11.36.9AELO20212020Traffic revenues4.54.2Availability receivable145.1150.5EBITDA(3.1)(5.7)EBT(12.1)(18.7)Net income(13.9)(22.2)Operating CF113.4110.9AEA20212020Traffic revenues64.757.7EBITDA63.045.4EBT36.716.6Net income27.212.0Operating CF47.234.5
Once again, the A-4 Concession Company developed initiatives with local communities to improve the mobility in urban centres along the concession route; in addition, it increased its cooperation with several NGOs.
We must also give importance to the relationship with other road managers, mainly to ensure the provision of mobility services to citizens in the best conditions.
Once again, the A-4 Concession Company developed initiatives with local communities to improve the mobility in urban centres along the concession route; in addition, it increased its cooperation with several NGOs.
We must also give importance to the relationship with other road managers, mainly to ensure the provision of mobility services to citizens in the best conditions.
