Comparison of Recent Toll Road Concession Transactions in the United States and France

XREAP Working Paper No. 2007-11

42 Pages Posted: 25 May 2011

See all articles by Germà Bel

Germà Bel

University of Barcelona - Department of Political Economics

John Foote

Thelen Reid & Priest LLP

Date Written: September 1, 2007

Abstract

Recent concessions in France and in the US have resulted in a dramatic difference in the valuation placed on the toll roads; the price paid by the investors in France was twelve times current cash flow whereas investors paid sixty times current cash flow for the U.S. toll roads. In this paper we explore two questions: What accounts for the difference in these multiples, and what are the implications with respect to the public interest. Our analysis illustrates how structural and procedural decisions made by the public owner affect the concession price. Further, the terms of the concession have direct consequences that are enjoyed or borne by the various stakeholders of the toll road.

Keywords: Transport infrastructures, roads, privatization, regulation and tolls

JEL Classification: L43, L92, L33

Suggested Citation

Bel, Germà and Foote, John, Comparison of Recent Toll Road Concession Transactions in the United States and France (September 1, 2007). XREAP Working Paper No. 2007-11. Available at SSRN: https://ssrn.com/abstract=1847586 or http://dx.doi.org/10.2139/ssrn.1847586

Germà Bel (Contact Author)

University of Barcelona - Department of Political Economics ( email )

Av. Diagonal, 690
Barcelona, 08034
Spain

HOME PAGE: http://www.ub.edu/graap/beling.htm

John Foote

Thelen Reid & Priest LLP ( email )

Washington, DC 20004-2608
United States

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