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ARTICLE · 24 MARCH 2005

Shadow Toll System is Replaced

A.M. Pereira, Saragga Leal, Oilveira Martins, Judice & Associados
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The concept of shadow tolls was born in the United Kingdom in the early 1990s, and thereafter was adopted by several other European countries. In light of budget constraints, this model was implemented in Portugal in order to develop a significant part of the National Road Programme.

PortugalStrategy
Pedro Melo
Pedro Melo

First published in International Law Office, November 29 2004

The concept of shadow tolls was born in the United Kingdom in the early 1990s, and thereafter was adopted by several other European countries. In light of budget constraints, this model was implemented in Portugal in order to develop a significant part of the National Road Programme. Consequently, and with a view to building new road infrastructure, the Portuguese government entered into seven concession agreements using the shadow toll model in 1999.

On September 30 2004 the Portuguese government announced its decision to discontinue the shadow toll system in favour of a real toll model. Again, the main reason for this decision lies in budget difficulties: the government's payment obligations in connection with the shadow toll system are not compatible with the need to spend on improving and maintaining the other national motorways.

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