The Highway of the Camino (Iruñea-Logroño), the Motorway of the Pyrenees and the Canal de Navarra are the three infrastructures that UPN has put in place and the data we are discussing are those provided by the Chamber of Comptos of Navarra on 13 November, corresponding to the General Accounts of Navarra of 2019. UPN decided to pay these infrastructures by means of shady tolls, i.e. the companies to which the concession was granted initially assumed the total cost of the infrastructure and the Government of Navarre subsequently paid them an annual amount depending on their use.

These tolls are mortgaged by the Foral Community, with payment commitments of approximately EUR 1,865 million. This means that the Government of Navarra spends around EUR 100 million annually on the payment of these infrastructures, approximately 2% of the budget. This data has been published this Monday by News Journal. These three projects have already resulted in a disbursement of EUR 811.5 million – outstanding from EUR 147 million of the extension of the channel being implemented – with a total cost of EUR 2,676 million, of which EUR 1,865 million is outstanding: 1095 million along the A-12 highway and the A-21 and 770 canals.

Highway of the Camino

The project, which had a budget of EUR 300 million, cost approximately EUR 389 million and the Government of Navarre paid EUR 20 million for the launch of the motorway in September 2006, six months ahead of schedule. The successful tenderer had benefits from the outset. In the period 2007-2013 it won 45 million, according to the report of the Chamber of Comptes. The business has been so good that the property has changed four times in hand. Since 30 June 2017, the operation of the A-12 is owned by the UBS infrastructure fund.

But the actual cost amounts to EUR 1,019 million for the Government of Navarra, including the maintenance costs assumed by the concessionary company. A very expensive business for public coffers: with the classic formula of the loan the approximate cost would be EUR 700 million.

By 2017 – during the first ten years of operation – the awarded company received EUR 427 million, 38 more than the cost of starting the motorway. In 2019, it charged a fee of 49.4 million euros and this year will bill less, as the pandemic has reduced traffic.

Pyrenees Motorway

Road A-21 is less profitable. The last 15.8 kilometers (45 in total) that run through the Motorway of the Pyrenees by Navarra are also made by shaded trails. Its cost was EUR 271 million.

During the first two years of operation, A-21 was not the big business expected by the promoters, as losses of EUR 600,000 were declared. Accordingly, in October 2013, a complaint was lodged with the foral government to restore the economic balance on the grounds that the non-construction of the motorway from the border with Navarre has a negative effect on traffic. Neither the Government of Navarre nor the courts assessed the petition. In addition to the complaints, the management company will earn a lot of money with the business until 2045: it has already recovered 127 million of the 271 million invested, and the Chamber of Comptes estimates that it will receive another 600 million euros until reaching 727.

Canal de Navarra

The canal is still under construction and the second part is being implemented. In this case, the annual fee is paid between the Foral Government (85%) and the rulers (15%). Aguacanal was the company that launched the first phase of the project in 2006, following an investment of EUR 169 million. The main shareholders were Acciona and Aguas de Barcelona (Agbar), with 35% of the capital. The business is obvious and last week it was learned that Acciona sold its stake in Aguacanal to a foreign fund. The second phase, which is about to end, will cost EUR 147 million. Both investments therefore amount to 316 million.

So far, the fees for the first phase and the increase in taxes have cost the government EUR 159 million. According to the Chamber of Comptes, another EUR 770 million will have to be paid (349 for the first phase and 421 for the extension) before the commitments made by UPN in 25 years’ time are concluded.