In 2003, the Spanish Government approved the new Public Works Concession Law to update the old motorway concession model and to extend it to other types of public works, and to reinforce the contribution of private financing to construct and maintain public infrastructures. The new law's risk-sharing approach to infrastructure concession contracts is outlined. This results in the private sector holding most of the market risks, with the public sector holding the risks that cannot be adequately managed by any other stakeholder. The approach to legal and political risk, unpredictable events, demand risk, and construction and operation risk is discussed. The application of the new law to the procurement of new toll motorways in Spain is described. Three new areas incorporated in the law are considered: progress clause regulation, the implementation of bonuses and penalties related to quality criteria and the definition of a system to re-establish theeconomic balance of the concession depending on the traffic level. For the covering entry of this conference please see ITRD E132365
Samenvatting