Last Thursday 19 October, Spain's Minister for Development appeared before Congress's Development Sub-committee to explain the main features of the new Road Investment Plan (Plan de Inversiones en Carreteras, "PIC") which the Spanish Prime Minister announced in July.

The initiative, to be implemented via a public-private partnership model, will involve €5 billion in investments to add more than 2,000 kilometres to the Spanish road network. It will be financed by the European Investment Bank (40%), banks and investment funds (40%) and concessionaire companies (20%). Once the infrastructure has been completed, the Government plans to invest approximately €350 million per year in monthly availability payments to concessionaires for the maintenance and upkeep of the roads over a period of 30 years.

The Road Investment Plan projects will be tendered and awarded between 2018 and 2019

During the announcement, the Minister outlined the department's plans to tender and award all the contracts under the PIC in 2018 and 2019. As a result, calls for tenders will be published in Spain's Official State Journal (BOE) in the coming months.

In recent days and with the aim of gathering feedback from potential tenderers, the Ministry has circulated among construction firms a draft of the tender terms and conditions that will apply to the more than 20 public contracts to be tendered. The Ministry is still studying some aspects of the terms and conditions, such as who will bear the cost of expropriations and the system for adjusting the monthly fee (which will be updated according to certain service quality indicators and the condition of the awarded sections of road).