1. THE SPANISH CONCESSIONAL MODEL – MANAGING RISKS PUBLIC PRIVATE PARTNERSHIP IN HIGHWAYS: INSTITUTIONAL, LEGAL, FINANCIAL AND TECHNICAL ASPECTS Antonio M. López Corral Professor of the Polytechnic University of Madrid Riga, May 9th, 2006

2. ADMINISTRATION RISKS –Causes de force majeur –Ius Variandi –Factum principis –Unforeseeable facts (mediating sentence of the justice courts) –Any other anticipated in the TOR –Patrimonial responsibility THE SPANISH CONCESSIONAL MODEL – MANAGING RISKS

3. RISKS OF THE CONCESSION HOLDER –Land acquisitions –Archeology founds –Administrative permissions –Construction –Demand (can be reduced but working symmetrically in benefit of both parts) –Availability THE SPANISH CONCESSIONAL MODEL – MANAGING RISKS

4. RISKS OF THE CONCESSION HOLDER –Signing the concession contract transfer the risks –Price of risks is related with competitive tension (it is lower with an open competition) –Concession holder transfer part of the risks to other actors (constructors, financial, insuring, operating, … ). Price of risks transferred depends of market prices –Concession holder remain with the risks in which he is the most efficient THE SPANISH CONCESSIONAL MODEL – MANAGING RISKS

5. RISKS OF OTHER ACTORS –Absence of public guarantees for the financial one –Some guarantees for little investors –Step in rights of the creditors THE SPANISH CONCESSIONAL MODEL – MANAGING RISKS

6. Thank you Antonio M. Lopez Corral Professor of the Polytechnic University of Madrid Tf.: (+34) 91 533 44 96 Fax: (+34) 91 533 44 96 E-mail: alopezcorral@telefonica.net