Government's PPP road contract 'savings' are a sham

The Court of Auditors has been analysing Portugal’s long list of recklessly expensive and poor value Public-private Partnerships that are financing road contracts and has concluded that they leave the taxpayer exposed to limitless liabilities.

More formally, the auditors ‘admit the possibility that the State is likely to have an increased burden’ especially with the major road repairs needed on the Silver Coast motorway which the taxpayer must pay for.

The government’s triumphant 'renegotiation' of the Silver Coast route, and others, for which ministers claimed multi-million savings, is a sham with the only ‘savings’ coming from reducing the concession holder’s obligation to carry out major repair work. Instead, the taxpayer will pick up the bill for this route and others under scrutiny.

"It seems like there is no guarantee that the State will not have an increased burden with these repairs," said the Court of Auditors in its opinion announced today as it questioned the so-called ‘renegotiation’ of the contract and the ‘savings’ announced.

The auditors said that ‘although it is claimed that these repair charges cannot be predicted, they can be assessed and controlled by looking at other comparable contract costs, and these must now be managed and budgeted for as the State has ended up directly financing the repair work.’

This con is not just up north, as the Algarve’s road contracts are included in the Court of Auditors’ list of shame.

In fact, five renegotiated roads contracts have attracted the auditors’ notice and they have asked for further details to be supplied as there is “no guarantee the reduction of costs claimed by the Government will happen.”

You must be a registered user to make comments.
Please register here to post your comments.