Portugal fights €500 million pandemic toll claims

Portugal’s state is refusing to recognise motorway concessionaires’ claims for compensation over traffic losses during the Covid-19 lockdowns and will appeal any adverse rulings, according to comments made by the head of the mobility regulator IMT. The dispute matters for investors because the claims, worth about €500 million, could affect the economics and legal certainty of long-term infrastructure concessions in Portugal.

João Caetano, president of IMT, said the state concluded the companies did not have a recognised right to a financial rebalancing of their contracts because their operational or financial capacity had not been significantly affected. He also said concessionaires had later benefited from high inflation, which fed through into toll revenue. Arbitration cases are under way, he said, adding that no final ruling has yet been issued and that “the State will always appeal” if decisions go against it.

If the state ultimately loses, the contractual rebalancing would be made through an extension of the concession term, according to Caetano. Brisa chief executive António Pires de Lima rejected the state’s position, saying operators should be compensated for losses caused by government restrictions on movement during the pandemic. He also criticised the state’s decision to challenge arbitration rulings, saying it had created unpredictability over both timing and outcomes.

At the same event, Pires de Lima said Brisa expects negotiations over the Brisa Concessões Rodoviárias contract to produce conclusions for political decisions in September or October. He said the talks cover issues including road links to the future Luís de Camões airport, partial toll exemptions on the A6 and A2, and the scope of Class 1 toll vehicles. He added that the renegotiation would not prevent the concession from being retendered in 2035, or possibly 2037 or 2038.

Originally published at Eco.pt