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

Germà Bel and John Foote ()
Additional contact information
John Foote: Harvard University

No XREAP2007-11, Working Papers from Xarxa de Referència en Economia Aplicada (XREAP)

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. (search for similar items in EconPapers)
JEL-codes: L33 L43 L92 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2007-09, Revised 2007-11
New Economics Papers: this item is included in nep-ure
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.xreap.cat/RePEc/xrp/pdf/XREAP2007-11.pdf First version, 2007 (application/pdf)
http://www.xreap.cat/RePEc/xrp/pdf/XREAP2007-11.pdf Revised version, 2007 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:xrp:wpaper:xreap2007-11

Access Statistics for this paper

More papers in Working Papers from Xarxa de Referència en Economia Aplicada (XREAP) Contact information at EDIRC.
Bibliographic data for series maintained by XREAP ( this e-mail address is bad, please contact ).