Monday, August 11, 2014

Charges with the PPP fell 9% in the first quarter – Reuters

Charges with the PPP fell 9% in the first quarter – Reuters

             


                     
                 

             

 
                     

In the first quarter of this year, the Portuguese State had net charges of EUR 308 million in public-private partnerships (PPP calls), revealed this Monday the Technical Monitoring Unit Project (UTAP). This represents a decrease of 9% compared to the same period last year and follows the process of renegotiation of several contracts in the road sector.


                 


                     With a weight of 65% of total government spending with the PPP, road partner represented between January and March, net charges of EUR 201.6 million, which represents an overall decrease of 18% over the first quarter of 2014 This happened despite having begun the cycle of payments to subsconcessionária Douro Interior. Excluding this impact, the reduction of area payments in road would have been even more substantial, about 22%.

The agreements that have reduced the costs of road concessions were signed with nine entities and permitted, in the first quarter, were reflected in the size of the payments that the State was required.

In other areas where there is partner there were increases in government spending. In health, the value of payments increased by 13% to almost € 94 million in security increased 34% to EUR 10.6 million and the railroad recorded an increase of 17% to EUR 2.3 million

The UTAP, which makes the balance of the regular activity of the PPP, clarifies that some factors affecting the comparability of figures should be taken into consideration. First, in the area of ​​health, the conclusion of CMFRS partnership and the entry into operation of the new hospital in Vila Franca de Gaia, and also the change in the monthly distribution of annual payment of grant Siresp.

The universe of PPP, reported on last March 31, including 33 partners, representing a cumulative investment of € 15.5 billion. The road is the area that has a more significant weight, with 21 partnerships, corresponding to 94% of cumulative investment and 65% of net charges.

In this sector, the Interior Norte concession, which connects Viseu the Keys, is representing the highest individual burden on the State. In the first quarter, the payments amounted to approximately EUR 41 million, representing an increase of 34% over the same period of 2013 already granting Beira Interior, which is the second highest expense, declined 46% to 35, EUR 5 million. In granting Beira Litoral / Beira Alta, the State paid for the first three months of the year, 28.5 million euros, 31% less than in the comparison period.


 
                 
             

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