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The following chart shows the changes
brought about by the financial crisis:
The main differences between both periods
are:
•
A substantial reduction n the num-
ber tenders per project.
•
The change in the project funding
situation.
a)
Restrictions and harsher funding condi-
tions: higher financial costs, shorter
terms...
b)
Less banks participating in Project Fi-
nance.
c)
The impossibility of submitting bids with
guaranteed funding.
•
Incorrect risk distribution because
certain risks transferred to the con-
cession holder were not considered
as such.
In short, this shows that Spain is a glo-
bal powerhouse in the concession sector,
which we must continue to export. Ne-
vertheless, in order to continue doing this,
changes in the regulatory framework are
required.
Because of the past experience, the ap-
petite of investors, and the medium-term
situation in the financial market, future con-
cession projects must have a longer matu-
rity process and must be based on realistic
market hypotheses.
Technological
Furthermore, risks must be distributed on
a more equal basis and some of the risks
should not have to be assumed by the
concession holder, such as expropriations,
funding risks, and the clause on progress
(the cost of future technological advances
is borne by the concession holder).
The method for resolving disputes, moreo-
ver, involves obstacles that make the sys-
tem inefficient because of the time it takes
reach an agreement and the fact that not
all disputes are the same, which makes it
even more difficult to reach a solution that
satisfies all parties and could result in the
project’s failure.
u e s t - c o l u m n