French transport regulator report on motorway concessions builds on Frontier methodology recommendations
Frontier advised the Autorité de régulation des transports (ART) , the French transport regulator, on the design of a methodology to analyse the internal rate of return and cost of capital for motorway concessions, as well as on the development of a set of key performance indicators. The results presented in the ART’s recent report directly build on Frontier’s work.
Since 2015, the ART has been in charge of supervising motorway access conditions via the toll system put in place by concession holders, in order to ensure that the regime allows for sufficient benefits for motorway users. The regulator notably provides its views and recommendations on new concessions or concession renewals, publishes annual summary accounts for the different concessions and carries out regular market-level analyses of the sector. In addition, the ART is responsible for reporting formally, at least every five years, on the profitability of concessions, allowing for a longer term assessment of the underlying economic model and tariff framework for each concession.
The ART’s first report analysing the profitability of motorway concessions in France is based on a set of methodological recommendations developed by Frontier for the regulator and presented to concessions holders in 2016 and 2017.
Frontier Economics regularly advises on the remuneration and financing of infrastructure assets across regulated network sectors.
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